Also known as the "fire sale" territory, the blue zone is where fortunes have historically been made. As the old saying goes, "buy when blood is running in the streets", and right now, the market is swimming in metaphorical blood. Or at least, it seems so, when you look at retail sentiment. The reality is different.
👉🏻 First, let's do a reality check for all newcomers: Bitcoin is down 27% from its all-time high from last month. In the 2017 bull market, Bitcoin had 6 dips of 30% or more. And in the current bull cycle alone, Bitcoin had 7 dips of 20% or more. So, what we are seeing right now: it's called Monday. Basically, any Monday (almost).
👉🏻 Second, let's analyze what is happening. Bitcoin's price tends to behave like a high-risk tech stock (Amazon, Tesla, Google, Meta). Not because there is any reason to do so, but because the traditional market does not know what else to do with Bitcoin than compare it to what it knows that also shows high growth and high volatility. And since the likelihood of a December interest rate cut by the US Federal Reserve has gone down, high-risk stocks value goes down (financial logic: higher interest rate means that you discount future cash flows more, thus the current value of the stock is lower). And thus, in traditional finance minds, Bitcoin's price should go comparatively down, so they are selling.
This is proof that (a big part of) the market has still not understood Bitcoin yet. The fundamentals that make a stock valuable are completely different from the fundamentals that make Bitcoin valuable. They should not move in tandem. If anything, they should be negatively correlated.
But, also as they say: "markets can stay irrational longer than you can stay solvent". So, don't bet on short-term moves. It can go up or down tomorrow. I don't know, and I don't care either.
Zoom out and ask yourself: has the narrative for Bitcoin changed? Let's see:
Will central banks keep printing fiat until it no longer holds any value? Yes✅
Will people still be looking for an alternative to ever-depreciating fiat? Yes✅
More generally, is Bitcoin still scarce, durable, divisible, portable, accepted, fungible, immutable, and decentralized? Yes. More than ever✅
So, what are you doing? You can panic or you can take advantage of this rare opportunity to buy cheap sats in the blue zone💹
#BTC #TechnicalAnalysis #Bull #Pump #Bullish $BTC $ETH $BNB 📈🚀🌕
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