Crypto Winter Is Here – Is It Time To Buy Bitcoin Blood?
The crypto market has now fallen to one of its lowest points in two years as Bitcoin and others tumbled, striking fear into the hearts of investors. With investors too scared to put money into the market, the prices of digital assets like Bitcoin continue to fall. As the chart turns red, there are undoubtedly a lot going through investors’ minds right now. But one question outweighs the others; Is it time to buy bitcoin blood?
buy blood in bitcoin
Currently, the bitcoin price is slightly above the $24,000 mark. This is the lowest value the digital asset has had in nearly two years. For some, this caused them to lose a significant portion of their portfolio in terms of monetary value. While for others it turned out to be a point of purchase for them. Also, many investors use historical data, such as what happened when the price of the digital asset fell.
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Investors have found themselves, time and time again, making a lot of money in markets like these when the price of the digital asset was in the red. This is called “buying the blood”, buying the digital asset when it holds a spread of red.
However, it is not always rosy for investors who choose to go down this path. This is because when it comes to a bear market, there is no telling how much the value of a digital asset will fall. Such was the case at the start of the last bull market when a drop to $14,000 sparked calls to buy blood. But since everyone would come to see it later, the price would drop to $6,000.
BTC’s 24-Hour Drop Sparks Fear Among Investors | Source: BTCUSD on TradingView.com
Ultimately, it all comes down to individual investors and their tolerance for risk. There remains every possibility of more losses at this stage. However, a recovery from this point would allow many investors to make good profits in a short time.
BTC falling trend
The crash that woke up the market on Monday is one for the books. Although the digital asset was trending rather weakly for most of the weekend, nothing could have prepared the market for the drop to $24,000. In light of this, users of the space have taken to social media to express their hopes, fears, and frustrations with the current market.
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The crypto market has also lost over $100 billion in market capitalization in the last 24 hours alone. This has now put it at points not seen since February 2021. This, in turn, has led to more selling as investors flee the market for the relative safety of fiat currencies.
It is unclear where the market is headed or if it will bottom out soon. What is clear is that the bear market is in full swing. Based on previous bear markets, crypto investors could find themselves underwater for the next two years.
CNBC Featured Image, Chart from TradingView.com
Disclaimer: The following editorial represents the views of the author and does not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate for creative and financial freedom.
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