The world’s largest cryptocurrency reached a record high of $ 58,640 on February 21, but as its appearance extended, prices fell to a low of $ 43,343 last week. “The market has started to recover again and the dip seen in the last week can only end up as a blip in the bigger picture,” says Sathvik Vishwanath, co-founder and CEO, Unocoin.
According to blockchain data and intelligence provider Glassnode, while the correction created a sideways signature and choppy behavior, it seems buyers are coming in earlier and fewer HODLers are dropping their coins this cycle.
HODL stands for “Hold on for Dear Life”, which suggests that you keep your cryptocurrencies despite the price declines.
“There is anecdotal and data-driven evidence that the market has seen an influx of new retail investors,” Glassnode said in a note.
Bitcoin moved within a broad range of $ 47,099.06-50,249.01 in the last 24 hours, trading at $ 49,084.73 from 0405pm, up 3.6%, according to CoinGecko.
Last week, bitcoin witnessed an increase in prices in the first few days, which was part of the hype cycle linked to FOMO, and in the middle of the week a significant price correction started.
“The dip corresponded to what the industry received in the last two weeks, but it was not strong enough to be called a dumping in the market. Because we have entered the last month of our fiscal year and we expect some people to make a profit or loss posting to take advantage of paying income tax by negating that their other sources of income are loss and profit, respectively. Many who felt that they missed the bus when the price was about 20-30% lower than the top now have a second chance to get in, says Vishwanath.
Meanwhile, ethereum, the second largest cryptocurrency in terms of market value, traded at $ 1,571, up 3.7%, while ripples traded 2.9% higher.