Bitcoin (BTC) has faced a huge decline in the last few hours. Dropping directly from the $90,600 level to $83,600 is not something ordinary. Surprisingly, there seems to be no major negative news in the market, yet this huge sell-off!
Why is buying now risky?
1. Lack of Confirmation: When the market falls so rapidly, it is difficult to predict where the bottom will be. Buying now carries a high risk of significant loss.
2. Liquidation Hunt: This type of movement is typically done by whales to liquidate long positions.
3. Volume Analysis: The selling volume is very high, which means that large investors are exiting the market.
My advice:
Do not rush to "Buy the Dip" right now. Let the market stabilize first. It is essential to see if the $82,000 - $83,000 zone is holding. If the market goes lower from here, the next major support level is at $80,000.
Conclusion:
Currently, holding cash (USDT) is the wise thing to do. Avoid taking entry until there is a reversal in the market or a bullish candle is formed. Keep your precious dollars safe.
