Bitcoin loses crucial $35000 support – Should you hold or sell?
Bitcoin (BTC) has continued its fall for 5 days in a row now. The mega-cap is threatening to enter a bear market barely weeks after surging above $45,0000. But as the weakness continues, investors are faced with a big dilemma. Should you hold or sell? More analysis on this later but first some pointers:
Bitcoin has lost the crucial $35000 support which is psychologically important.
The coin went below $31,000 at one point during intraday trading albeit its recovered.
The broader sell-off in the crypto market is likely to continue in the coming days.
Data Source: Tradingview
Bitcoin (BTC) – Hold or sell
The one big dilemma Bitcoin investors face is whether to hold or sell. Now, there are many ways to look at this. On the one hand, if you bought BTC a few years back, you are still in the money. However, most investors will always focus on the future outlook as opposed to what has already happened.
So, in order to decide whether to hold or sell BTC, it is important to know where it’s heading. The period of weakness we have seen over the last few weeks is not going to end soon. The slowing global economy and red-hot inflation are pushing crypto assets down.
These economic conditions will not abate anytime soon and as such, BTC investors must be ready for a prolonged period of volatility. Nonetheless, BTC is still a hold. The coin will likely return above $50,000 before the year is out.
How to view this sell-off
Sell-offs in 2022 have become all too common in crypto. This one however appears to be more decisive since it is correlated to equity markets.
Perhaps we are seeing the ultimate Bitcoin correction. As such, it would be best to wait for the price action to stabilize a bit before buying BTC.