The market is "fiery", what does crypto experts say?
Last week was probably a "bloody" week for the financial market in general, and the cryptocurrency market in particular. Large waves continuously attack, leaving traders in a state of uneasiness.
Recently, according to information from major exchanges, Bitcoin dropped to 700 USD in just a few minutes late at night on September 27. In the morning session of September 30, the price of Bitcoin dropped another 200 USD, close to the 8,000 USD mark, making other coins also decrease in price. Things have gone terribly wrong!
Don't worry, let's analyze the opinion of crypto experts on the current market situation with Primexbt!
Bitcoin price drops to 8000 USD for the first time in 3 months
Starting on Tuesday (September 25), the Bitcoin price has continuously bottomed out. BTC/USD price has continuously plummeted from $10,200 to a multi-month low of $7,700, a drop of more than 25% in just 3 short days.
However, that is not all! Other coins also suffer from significant effects from the market - according to data from Coin360. Up to now, the market has not shown any signs of cooling down. In these days, perhaps it is not difficult for investors to witness an alarming "red" price list.
Why? For whom? Why?
Trading policy is the first reason that experts in this field say.
According to a report from CryptoQuant, after the Bitcoin price hit $8,000, about $700 million was liquidated from the BitMEX exchange, leading to a series of big and small waves in the past few days.
Bear wins. What's next?
In recent days, it is easy to find “tweets” pointing to new levels of support after successive drops. What did the investment experts think?
“The 100-day trading range has just been broken. If this is a bull run, BTC will hit the $10,000 mark. Otherwise, I won't buy! Buy now as buying at $5,500 after the bottom of $6,000 was broken. I don't want to do that” – DonAlt Investor
In addition, this investor also asserted: “Bitcoin price may increase in the long term, but will still decrease significantly in the short term. The price has dropped almost 20%, bears have won in the short term. The smart bulls just need to accept and move on, no need to try to outdo themselves right now.” However, in the medium to long term, Nick Cote still believes in an uptrend based on the fundamentals of this No. 1 coin.
Meanwhile, Alex Krüger was the first to mention Bitcoin’s hash rate: “The sharp drop in BTC has nothing to do with the stock market drop. The sharp drop is also less likely to be related to a drop in Bitcoin's hash rate. What will happen next? Bears will control the market until prices go higher and enter a bear trap (starting at the breakout point of $9,000, and not exceeding $9,500).”
When to sell Bitcoin? – Mark Yusko: “Never!”
“Bitcoin (BTC) is a buy, and there is never a right time to sell it” – Mark Yusko, CEO of Morgan Creek Capital Management.
In an interview with CNBC (September 27), Yusko compared the 10-year history of Bitcoin to Amazon. For him, while the Bitcoin price can go up/down, the coin's growth factor is a solid reason to buy, not sell. “All stats and values are going up. Accordingly, the price of any asset will fluctuate,” he said.
Therefore, selling Bitcoin would be like selling Amazon stock. So far, there is no right reason and time to do it!
Not only Mark Yusko, CoinMarketCap data speaks for itself! In March 2019, BTC market dominance was at 50.7%, the lowest figure since August 2018. However, history has shown that when BTC dominance was at its lowest (32% in December 2017) it was also when BTC was at a record high – $20,000. In addition, some investors like Tone Vays, or Justin Sun – CEO of TRON also made positive predictions for Bitcoin in the long term.
See more: Copy trades using invest on Primexbt
“Don't panic! Bitcoin is following the ‘Best 10 Day Rule’!” - Tom Lee
As stated earlier this year, Tom Lee - founder of Fundstrat - remains faithful to the “10-Day Rule.” Accordingly, since 2013, Bitcoin has been recorded as having achieved the best performance of the year only. in about 10 days.
From the comment on Twitter, he pointed to the rule that also appeared in 2017 that Bitcoin's 12 days return represented the total return for the whole year. However, for the rest of the days, the BTC value also drops 25% year on year.
Accordingly, this investor also points to the relationship between Bitcoin and Stocks (S&P 500). “If an investor does not hold a crypto asset within the best 10 days, their annual return will drop by 25%,” similar to the S&P 500. So the only strategy for BTC is HOLD. . Also, according to data from 2009, “Bitcoin's best times are when the S&P 500 is over 15%” – in an interview with CNBC.
Recently, after days of dismal market, analysts have started to see more optimistic signs of reversal. According to Luke Martin, this drop was related to the expiration of CME futures, and this has now been resolved. Therefore, he is confident for short-term optimistic judgments. Besides, PlanB investors also have positive judgments about the upcoming rally based on fractal analysis - used to identify periodic pricing patterns.
As such, despite the dire situation brought about by BitMEX's trading policy, Bakkt's disappointing debut, and Bitcoin's drop in hash rate have shaken the market in the past few days, and have maybe in the coming days. However, this is the expected result. Accordingly, a beautiful prospect for Bitcoin in the medium and long term is also believed by experts. Compared with similar periods in the past, this is probably not something new!
Big investors have their own opinions, what about Primexbt investors? Please comment your opinion right below this article!
