The strong bounce in Bitcoin and select altcoins shows solid demand at lower levels, suggesting traders are buying the current dip.
Bitcoin (BTC) fell to its lowest level since February, indicating panic selling among investors. However, Blockstream founder and CEO Adam Back said in a post on X that drawdowns are a “normal bull market pattern.” He said that traders should buy the dip instead of panicking.
The panic has been triggered by the liquidation of the German government’s Bitcoin holdings and the expectations that Mt. Gox creditors will also monetize their repayments. Finance analyst Jacob King said in a X post that most of Mt. Gox’s former creditors are likely to sell their holdings.
According to CoinGlass data, cryptocurrency liquidations over the past 24 hours have reached over $665 million, the highest in two months. Analysts expect the selling to continue and Bitcoin to drop to $50,000.