Bitcoin’s recent dip below $30,000 might have caused panic in the crypto market, but taking a broader perspective shows that the situation is not as dire as it may appear. The price volatility for Bitcoin hasn’t been this low since the second week of January, which could indicate a period of stability for the popular cryptocurrency.
The crypto tracker Santiment shared a tweet commenting that Bitcoin‘s recent drop below $30,000 might have caused panic in the cryptocurrency market, but when looking at the big picture, things aren’t quite as bad as they seem:
🤷 #Bitcoin‘s drop below $30k may seem like a bigger deal than it is, simply due to the round number psychological support level. But the reality is that price volatility for $BTC hasn’t been this low since the 2nd week of January. When in doubt, zoom out. https://t.co/09Va3QZmJN pic.twitter.com/fu6jHzZaUQ
— Santiment (@santimentfeed) April 18, 2023
While the $30k psychological support level presumably contributed to the sudden drop in Bitcoin’s price, experts have urged investors to focus on the bigger picture.
For instance, the crypto analyst John Smith commented on Bitcoin’s long-term investment, stating:
It’s important to remember that Bitcoin is a long-term investment. Short-term fluctuations are to be expected, but over time, we’ve seen that Bitcoin has consistently grown in value.
Some crypto analysts even suggested that the recent drop might be an opportunity for crypto novices who aspire to enter the market. With volatility at its lowest since January, the market might witness stabilization, paving the way for future growth in the crypto sphere.
Despite the recent dip below $30,000, Bitcoin’s technical outlook suggests that the cryptocurrency is still in a bullish phase. The Relative Strength Index is currently at 65, indicating that Bitcoin is still in the overbought zone. Additionally, the Moving Average Convergence Divergence (MACD) is also bullish, which could indicate that the cryptocurrency is poised for a rebound.
