The price of bitcoin (BTC) is approaching USD 20,000 after the massive sell-off that started five days ago. A reason to believe that this movement could continue for a while longer, causing the cryptocurrency to hit lower values.
That is why fear has exploded in the bitcoin market at its sharpest point of 2022according to him index from Fear and Greed. This is on the scale 7 out of 50, which implies a drop of six points in five days.
This intensification of fear has occurred since Friday when the price of bitcoin entered a free fall, falling from the minimum floor of USD 29,000 in which it had been found for twelve days. A situation that occurred just after the disappointing economic announcements from the United States and Europe reported by CriptoNoticias.
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Given this scenario, the investment specialist and great bitcoin critic Peter Schiff said: “How can someone look at this bitcoin chart for a long time and not sell? Even if you think BTC will trade higher, it’s hard to imagine it not testing long-term support at the bottom line first. I think it will fail that test. Regardless of that, better sell now and buy back lower.”
Like other specialists, Schiff believes that BTC could fall further in price. However, far from showing an entirely dark prediction, advised to buy bitcoin when it falls to lower values, which may suggest a long-term bullish outlook.
Although it is worth clarifying that all predictions are based on speculation and there is no guarantee of their rise or fall. That’s why, it is imperative that any trader act carefully following an organized investment plan anticipating the possible risk. In this way, you can avoid unwanted situations, impulsive decisions and panic.
The bear market is not over, but there could be an upside to take advantage of, analyst says
Amid the crash of cryptocurrencies, analyst Alberto Cárdenas commented that bitcoin and ether (ETH) could experience a bear market rally. That is to say, a short period of rise, motivated by the purchases of those who see this price as an opportunity and that, generally, ends up becoming a bearish movement again.
“The bear market is not over, but this can be a very profitable rebound,” he estimated. The specialist believes that bitcoin price could rise 30% from the $20,000 line and then fall back. From this perspective, BTC would reach $26,000 and then drop again, perhaps even lower than today.
The same thing he believes could happen with ether (ETH), rising from the $1,000 stick it is trading at now to $1,300 and then down.. Cárdenas explained in a recent interview with CriptoNoticias that the markets are currently experiencing the consequences of a bubble that had inflated asset prices.
For this reason, he estimates that they will continue in a downward trend for a while longer, the same projection that other analysts have been giving in recent months. An idea that he has increased these days, after the sharp drop caused by the global economic context that distances investors from risky assets, such as bitcoin, ether and stocks.
In this sense, the latest Glassnode report estimated that BTC price bottom may take months to materialize. “The bitcoin market has entered a phase that coincides with the deepest and darkest bear cycles of the past,” he said. Historically, this stage has lasted from 8 to 24 months, so it will be necessary to see if this cycle is repeated once more.