Everything was going smoothly, so what was the reason for the sudden dump to $29k from $64k?
A sudden dump just happened because of Elon Musk said mining bitcoin is not eco-friendly? or it just happened cause china banned bitcoin?
people dont realise that there is a difference between value and price
imagine that in spring 2021 the VALUE was in the range of $21k-$32k
and above that was just emotional speculative pump bubble excess
meaning for spring 2021:
value $26k average
price $64k ATL
so the $64k was never meant to be a stable sustainable price. it was always an over inflated price of value by atleast a 2x factor
and yes when emotion broke. the bubble burst and the price
corrected back down to a more reasonable value level
the reason it didnt break down to $10k..(2020 numbers) is because VALUE increased since 2020
now that more people have sold their cheaper(under $20k in 2020) coins for the $30k+ level in 2021. there are more people with minimum acquisition value of $30k+ and less people with minimums below this
this creates more of a support at the $30k+ level.
and now as hashrate is rising the mining cost is also rising. which too means less people achieving coin below $30k.
this current $47k is a slight inflated bubble. but not as bad as the $64k
for $47k to lock in as good support would need hashrate to be 50% more than now. and for enough utxo to have been spend/exchange hands at this level to provide the new holders of the utxos' to deem their minimum as $47k
so this will take time.
but dont presume this $47k is already some fixed sustainable value. its not. its just a higher price than last month but not as bad inflation as spring 2021