Bitcoin collapse: The real picture of the market in my eyes

How are you all? I hope you are all well. To be honest, my head is spinning a little after seeing the market today. The way Bitcoin is going down is not just a story of a price drop; there is a lot of pressure on investors behind it. And I wanted to share the whole thing with you in a simple way, so that everyone can understand what is really going on now.

The on-chain data I have been seeing over the past few days has essentially opened my eyes. New people who have been holding BTC for 1 day to 1 week or a maximum of 1 month have seen their losses become quite deep. Even short-term holders who have been holding BTC for up to 6 months are not able to get above their cost price. So everyone tries to get out quickly as soon as the price rises a little, which is turning support into resistance.

To be honest, this is nothing new in the market. I have seen it many times myself; new investors cannot withstand much pressure. They want to get out at breakeven whenever they get the opportunity. This increases the selling pressure in the market, and the price goes down again. Many times it seems that the price is on the right track, then selling pressure comes again and brings the market down.

Still, the whole thing is not negative. Looking at history, it can be seen that if short-term holders can hold on to their positions even at a 20-30% loss, then a major crash can be prevented. But if they capitulate one after another and sell in despair, then the market can fall even deeper. Now, most analysts are worried about this point.

When I saw the price of BTC today, hovering around $84,000 to $85,000, I understood very clearly that the decisions in the market are now not being made by reason, but by emotion. Some are afraid of losses, and some are waiting for the price to fall even lower. The price is swinging in this tension.

What am I doing to myself? Quite simply, I am keeping a cool head. I am not taking big positions; given the market's downward trend, it seems that dollar-cost averaging (DCA) is the wisest course of action now. Never decide on the spur of the moment after hearing the noise of the market. Because if you make a mistake here, the entire portfolio will be ruined.

Finally, the market will always scare you; that is its nature. But if we analyse and understand every fluctuation, then the pressure decreases. There will be profits and losses, but the decision should be taken with your own head; this is the biggest lesson.

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