This YouTube video by Crypto Zombie discusses the current value drop in almost all cryptocurrencies. The month of February saw all time highs, new investors, and Elon Musk joining the movement. The drop from this past week probably seems scary for everyone who is new. To anyone who has held these assets for 6 months or longer, this is normal. Throughout 2020, holders wondered if Bitcoin would every break to above $20,000. Today it’s over $43,000, although it almost reached $60K this month.
There has been a Bitcoin pattern of explosive growth, sharp drops that don’t quite reach the bottom, then sideways consolidation before even higher growth. When in doubt, zoom out. A long range view of Bitcoin’s price shows higher highs AND higher lows. Other cryptocurrencies, called altcoins, tend to follow Bitcoin’s lead, and Bitcoin is considered the tide that lifts all the boats.
In the video, the host K-Dub goes through some charts, and determines that the bottom of this current dip is in the $40K to $42K range. That will be a good time to buy before the next bull run. Many crypto mavens expect Bitcoin to reach 6 figures in 2021, so newbies shouldn’t despair. This is normal.