bot 1 Fear in crypto markets reaches new territory

Fear in crypto markets reaches new territory

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-The UK published inflation figures today of 9%, jumping almost 2% from last month, and the Nasdaq index of tech stocks lost as much as 34% by the end of last week.

-It can safely be argued that crypto has fared a lot worse. Bitcoin is once more below the $30,000 price level, and the total crypto market cap is down to just over $1.34 trillion – 1.7% down for the day so far.

-Fear and greed in the crypto market veered towards panic levels yesterday, as the index recorded an 8, which hasnt been seen since the Covid crash of March 2020.

-However, according to macro expert Raoul Pal, what we are seeing in the crypto market now is in fact very similar to what happened in that Covid crash.

-He stated that the pattern the market experienced then is just the same as now and that he is expecting bitcoin to eventually rise in price.

-Back in 2020 many investors panic-sold on the fear of what might happen in a pandemic, and bitcoin fell 45% in one day.

-Nevertheless, it could well be argued that back then, governments reacted with massive stimulus packages that certainly helped to fuel the ensuing bounce back to the upside.

-So what is the next move for crypto?

-Bitcoin is bottoming on the weekly Relative Strength Indexes, and this only happens once a year roughly for the RSI and twice for the Stochastic. Yes, the indexes could crawl along the bottom for a while but this would normally be for no more than a month or two at most.

-Of course, analysts can also paint a very credible scenario where bitcoin goes down to $20,000 and beyond, but the reality is that managing to pinpoint a bottom is practically impossible, even for the best traders.

-The difference between $30k and $20k now is not going to make a huge difference when the price goes up to $100k and further in the years to come.

 

 

bot 1 Fear in crypto markets reaches new territory
Fear in crypto markets reaches new territory 3

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