It was a very depressing period with many media outlets throwing in their sensationalist news stories and creating a fire where there should be none. We have been looking at the market situation during the whole week. The hype surrounding the Ethereum merge quickly died down after it was complete and brought down the whole crypto market once again. It is, somewhat, according to plan.
The dip was temporary but scary
One of the biggest issues with the crypto market today is that volatility is quite high and making predictions is impossible due to instability in the global economy and geopolitics. So many factors can affect the price of any given token that the overall landscape of the crypto industry is just too random. Only long-term strategies work reliably because investors who are in for several years are not afraid of short-term dips.
However, bears tested the waters and managed to drop the price down to $18.3K at some point during the day. Many experts thought that it was the ground on which the main battle would take place, but it was immediately rejected by Bulls who brought the price back to $19.4K at the time of writing. The price movement was mirrored across the industry with ETH following the trend. However, ETH still has not recovered from today’s low of $1277. At the time of writing, it is traded at $1356.
News outlets went crazy
We have to remember that even hitting $14K is still not the worst-case scenario for the BTC community. There could be even lower dips that will still indicate a strong recovery and an incredible Bull run somewhere in 2023 even if we see a really bad bear trend before the end of the year. It is possible that BTC will fall to $11K and that ETH will hit $400 as predicted by some technical analysts.
The historical data also shows that there is still nothing wrong with the current downtrend. It is all part of the plan. However, scalpers may have been very disappointed by the unexpected change of course.