After hitting heights previously unseen early last month, Bitcoin’s price has dipped once again. It has been hovering around $54K for the past few days, consolidating after an expected bull run. Some investors were scared after the massive dip, yet all technical details point to another great run that will see BTC going past the $60K mark and possibly higher.
Some investors have pointed out that Bitcoin takes a beating at the end of each month. It’s a pattern that has emerged recently and one experts have been trying to shoot down. While their opinions don’t usually align with the opinion of investors, one thing’s for sure – everyone’s expecting Bitcoin to jump high again soon.
Why the Dip?
No one’s really sure why Bitcoin has taken such a dip after reaching great heights. Many have mentioned something called “max pain” which points to a trading counterparty reaching its optimal personal profitability.
The rapid price rise caused a market exhaustion and got Bitcoin a much-needed break. The largest cryptocurrency has been going strong for quite a while, giving whales and opportunity to push the price down. We just need to take a look in the past to learn more about it. The biggest Bitcoin price dip happened in August 2020, when a whale took a massive profit that cascaded the market all the way down.
At that time, Bitcoin’s price was touching the Network Value to Transaction ratio price model that worked as a support during previous bull runs. Since then, the price bounced back with a bang, hitting nearly $60K on an occasion before consolidating lower. Continued institutional interest and backing from major companies sent Bitcoin flying high at the beginning of 2021 before the market crashed a couple of weeks ago. History repeats itself, and if we learned anything from it, the price will jump to the sky soon.
Ethereum in a Roll
There’s another big crypto story happening during the recent Bitcoin price swings. The market’s second-biggest cryptocurrency has reached and all-time price high. Ethereum investors have a lot to look forward to as the ETH coin reached a price high that’s currently in the $3,200 range.
The price hike was mostly fueled by increased interest in NFTs. For those unaware, NFTs, or non-fungible tokens, have taken the sports and art world by storm. They offer fans or artists unique digital and video content like virtual cards, special sports moments, and such. So far, they’ve got the backing of legendary football players Tom Brady who launched his own NFT company and digital artist Beeple, whose NFT piece recently sold for $70 million at a Christie auction.
Thanks to the market’s increased interest and the fact that you can buy NFTs with ETH, Ethereum’s price has been on a roll. It remains to be seen if the price rise is real or the coin will take a dip. Everything’s pointing to a higher rise, possibly even $4,000 which will make ETH a worthy Bitcoin rival.