Why Crypto Market Is Down Today? Don’t Panic Sell, Warn Experts
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Bitcoin plunged below $83,000, marking a sharp 25% drop from its January peak. The Fear and Greed Index has crashed to 10 – lower than during the FTX collapse – signaling extreme fear in the market. Panic is setting in, with traders rushing to sell, but history suggests that deep corrections often pave the way for strong rebounds.
Is this just another shakeout before Bitcoin’s next big move, or is there more pain ahead? Let’s break it down.
Bitcoin’s February Trend – Will It Recover Before the Month Ends?Traders rushed to sell as $1.3 billion worth of Bitcoin was deposited into exchanges yesterday, a clear sign of growing anxiety. Meanwhile, Bitcoin’s daily trading volume dropped 17% to $68 billion, and futures open interest declined by 6.3% to $53.6 billion.
February has historically been a strong month for Bitcoin, but will the trend hold this time? Many analysts believe the current drop is a buying opportunity, but with uncertainty in the market, investors remain cautious.
Analysts Say Panic Selling is a MistakeDespite the sharp decline, experienced analysts urge investors to stay calm. Bitcoin corrections of 30% or more are common in bull cycles. Currently, BTC is testing its 200-day moving average, and its RSI (Relative Strength Index) is in oversold territory—both signs that a potential rebound could be on the horizon.
CryptoQuant’s Ki Young Ju reminded traders that Bitcoin fell 53% in 2021 before hitting a new all-time high. He warned that buying when prices rise and selling when they drop is the “worst investment strategy.”
Crypto analyst MackAttackXRP echoed a similar view, saying that fear presents the best buying opportunity, while greed is the time to sell. His advice? Buy when prices are down (red) and sell when they rise (green).
I'll say it again, with Extreme Fear you should Buy and with Greed you should Sell.
Buy in the Red and Sell in the Green. #BTC #XRP pic.twitter.com/pBsMJNwOr5
