The price of bitcoin has undoubtedly increased exponentially in the last 3 to 4 months. However, we are talking about a relatively less exponential rally compared to the 2017 bull run. The 2017 bull run increased 228% in 34 days, while the current bull run increased by 125% in 27 days. At this stage, everyone has only one question in mind: “Should I buy bitcoins?”

 

 

Should I buy bitcoins?

Perhaps the weirdest thing about bull runs like the current one is that the expected correction did not happen. However, this correction was of course inevitable. The final collapse could turn into a correction as the price prepares for the next leg or a complete refusal in the bear market.

In fact, today’s drop was 39%, the second largest since the Black Thursday drop in March 2020. Due to this decrease, a total of $ 2.74 billion position has been liquidated in the last 24 hours.

Therefore, a question that remains among investors is whether this drop is worth buying or accumulating more Bitcoins. Should I buy bitcoins? question puzzles everyone’s mind.

 

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Whales still trust the market

Addresses with 1,000 BTC continued to rise and showed no signs of stopping despite the recent drop. This shows that investors have not lost faith. Since December 2020, addresses have grown by 4%.

The Miner Position Index shows that the miners who are the reason for this decline have finished selling. This can be seen with MPI falling towards its neutral status.

 

Difficulty adjustment can lower the hash rate

With the ‘difficulty adjustment’ in a new ATH, it will be difficult for small miners to compete with large-scale farms. If this were the case, the miners would have to liquidate their assets and further lower the price. However, this difficulty adjustment will not be the case as this will result in small-scale miners closing their farms which will result in a decrease in hash rate and an equivalent adjustment in difficulty in the future.

Additionally, Bitcoin has been in the bear market for more than 3 years, and it makes perfect sense that the price should continue to rise as in 2019 and not enter the bear market. However, the difference between this rally and 2019s is corporate money.

Given all these factors, there is a strong feeling that the BTC rally may continue. However, we recommend that you evaluate all possibilities and create your own investment strategy and avoid risks.

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