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Sell or Hodl? Experts Weigh in on Current State of Market
- Bitcoin’s 129% rally and its fluctuating 12-month performance illustrate the difficulty in clearly distinguishing between bull and bear markets in the crypto space.
- Crypto Banter’s Ran Neuner advises selective profit-taking and anticipates market corrections, amidst a “frothy” and irrationally exuberant market.
- Santiment reports Bitcoin traders are taking profits, with a decline in Cardano wallets potentially signalling a price uptick.
- Meanwhile, Michaël van de Poppe suggests buying dips, eyeing a possible extended correction if Bitcoin falls below US$ 36k.
Bull Market, Bear Market?
The crypto market has had an impressive rally in the past 45 days or so, with Bitcoin (BTC) increasing by an impressive 129% – nice returns for those dollar-cost averaging during the bear market. So, surely, we have entered the bull market, right? Well, when you look at the Bitcoin chart and especially at the last 12 months you see, also a 129% increase – with quite a few ups and downs.
One could argue we have been in a bull market for quite a while now, while others may point to past performance and point out that we are still early in the cycle. In reality, it is very hard to tell what part of a market we are in.
Jonathan Miller, Kraken Australia’s MD, urges careful interpretation of the current market stage, highlighting the blurring lines between bull and bear markets. He points to the upcoming Bitcoin halving and Ethereum’s Dencun upgrade as optimistic indicators, drawing interest from both institutional and retail investors.
There’s a common misconception that the crypto markets are either in a bull market or bear market. In reality, there’s a large grey area between these two.
Jonathan Miller Crypto Banter: Sell, Sell, Sell
Whether one should buy or sell now or just keep hodling depends very much on the individual risk appetite, when they entered the market and where they believe we are headed.
Crypto Banter’s Ran Neuner for one laid out his strategy to his viewers in a recent YouTube video. While the video was titled ‘I’m selling all my altcoins here!’ he quickly revealed that he was not in fact selling all his crypto bags. Neuner admitted he is taking some profits and anticipates that we will see further corrections, serving as entry points.
The host also pointed to what he calls a frothy market, meaning that there are signs of people aping into projects without knowing anything about fundamentals. Neuner revealed he was shorting some coins as he called the market reaching peak irrationality.
Bitcoin Profits – ADA Capitulation?
Meanwhile, market intelligence platform Santiment said Bitcoin traders are engaging in profit-taking activities, evidenced by a slowdown in the growth of wallets holding over 0 BTC. Additionally, the number of Dogecoin wallets is on the rise, while Cardano wallets are experiencing a decline. Such decreases are typically indicative of capitulation, the analysts said, which frequently precedes upward movements in price.
Trader Michaël van de Poppe on the other hand reckons it’s time to get ready to buy the dips. He said in a post that Bitcoin is currently encountering its last major resistance level at US$ 38k (AU$ 57k).
Without a breakout, more consolidation is likely needed before a rally can begin. Therefore, the strategy of buying during price dips remains advisable to him. He added, if the price falls below US$ 36k (AU$ 54k), then a target range of US$ 33-34k (AU$ 50-51k) is anticipated for an extended correction phase.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
