Bitcoin has continued to weaken since the close of U.S. stock markets on Friday and has now fallen 7%, hitting a three-month low of $63,400. The crypto market has cooled off, with weekly losses reaching 15.6%. Among them, Ethereum fell 21.2%, while XRP and Solana each dropped 22%.
Analyst James Check pointed out that the market is experiencing its fourth wave of stop-losses since reaching its all-time high. He observed that most of the investors closing their positions now are those who sat on the sidelines and hesitated when prices were in the $60,000 range in the middle to late part of last year, and then bought in out of FOMO (fear of missing out) near $80,000 in September. Now they are exiting at the price levels they should have taken advantage of three months ago—precisely the range where they initially regretted not having bought in.
Check believes Bitcoin has entered a “deep value zone”—a danger zone. Such levels of undervaluation occurred earlier this year in February and June, and even earlier during the crypto bear market at the end of 2022. He added that the bottom may not have been reached yet, but historical experience shows that investors willing to enter the market in stages will ultimately reap profits.
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