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Bitcoin’s (BTC) price is bleeding. The world’s leading digital asset rose astronomically in a historic bullish run and saw its price testing the $100,000 resistance level. However, the market is witnessing an epic sell-off marked by crashing prices. This has prompted a comment from Ki Young Ju, CEO of CryptoQuant, an on-chain analytics platform.
Lessons from 2021 on nature of Bitcoin’s volatility
In a post on X, Young Ju highlights the nature of the bull market that Bitcoin is currently experiencing. The update aims to remind Bitcoin investors how markets have performed historically during times like this and what to expect.
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Young Ju referenced Bitcoin’s 2021 historic bull run, which saw BTC soar from $17,000 to $64,000. He emphasized that several sharp corrections saw prices decline by as much as 30%.
He noted that this remains a natural part of Bitcoin’s price movement, even during an upward trend.
The CryptoQuant CEO clarifies that his update does not predict a looming price correction. Rather, it is a general observation of the Bitcoin market’s volatility. Notably, pullbacks occur naturally and can happen even when prices are rising.
Managing risks in bullish market
Young Ju, however, called on investors to manage their risks properly. This suggests that investors should avoid panic-selling during temporary dips, which are often mistaken for the end of a bull market.
Young Ju refers to this as the “local bottom,” which could offer opportunities for those with long-term perspectives.
Although Young Ju insists that Bitcoin is still in a bullish phase, as of this writing, BTC has lost 4.94% of its value in the last 24 hours and now trades at $93,743.31.
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Before rebounding, the coin dipped to $92,410 in earlier trading. Despite these fluctuations, trading volume has risen by 54.20% to $88.72 billion, indicating that some investors have not given up on the coin’s potential.
Nevertheless, these fluctuations have triggered panic among other investors, who have started dumping to minimize potential losses should the price decline further.
Source: https://u.today/were-in-a-bull-market-cryptoquant-ceo-on-epic-bitcoin-sell-off