A few hours ago, the price of Bitcoin plummeted by over 5% in a matter of minutes, hitting a local low of around $41.5K.
Some people are already panicking.
Their question: Was it too good to be true? Is the Bear Market back?
Every time I read these excessively Bullish or Bearish headlines, it makes me smile. It confirms that the majority of market participants still don't make the effort to understand the why of Bitcoin.
Worse still, they don't understand that this volatility in Bitcoin's price is completely normal. That's the way it is in a free market like Bitcoin
No one is there to stop trading when the price of Bitcoin falls or rises.
The Bitcoin price evolves constantly in real-time to reflect the balance between buyers and sellers. That's all there is to it. People need to get back to basics.
It's also important to understand that the price of Bitcoin is not going to reach a new ATH linearly. It doesn't work that way in the Bitcoin world. Bitcoin's price rises over time, with bullish phases interspersed with corrections of varying magnitude.
After eight weeks in the green and a price that had touched $44K, it's healthy to witness this correction, which allows the market to regain some air.
Interestingly, it comes at a time of low volume and low liquidity.
So don't panic!
We may even see an even more pronounced correction in the days ahead, as liquidity seems to be drying up after the hot run we've witnessed in recent weeks
In any case, you shouldn't be too concerned. Remember, in the world of Bitcoin, you have to do everything you can to avoid giving in to your emotions. One watchword: No FOMO, No FUD
This is where I come back to what I told you a few days ago when the price of Bitcoin surpassed $44K:
The Price of Bitcoin Exceeds $44K. Don’t Be Fooled and Continue to Focus on Education Rather Than Speculation.
Education > Speculation.
https://inbitcoinwetrust.substack.com/p/the-price-of-bitcoin-exceeds-44k
Don't get trapped. Remember that education is always more important than speculation.
We'll see what the rest of the week has in store for us on the Bitcoin market, but in any case, prepare for all scenarios and stay true to your plan with Bitcoin.
Stay strong, Stay Bitcoin HODLers.
