Why the probability of another wave of decline in the crypto market remains and when the current “bear” cycle will end
Trader Peter Brandt has spotted a unique signal that could indicate a good time to buy bitcoin. Brandt drew attention to the fact that many crypto enthusiasts are bearish, and most participants in the “laser eyes” flash mob are confident that the price of bitcoin will fall below $30,000 in the near future.
The “laser eyes” flash mob started on social networks in February 2021, when bitcoin reached a local maximum of $58.3 thousand. After that, many supporters of the first cryptocurrency, in anticipation of its growth to $100 thousand, posted photos with “laser eyes” as an avatar your profile.
I find it fascinating that many (not all) on social media who wore laser eyes in Mar/Apr and predicted a rocket shot 🚀for $BTC in Nov now are predicting that the $30k level will be violated
When bulls wear laser eyes — time to SELL
When bulls become bears — time to BUY???? pic.twitter.com/ytchaFLDfN— Peter Brandt (@PeterLBrandt) January 30, 2022
Whether it is worth buy bitcoin now, focusing on the negative mood of market participants.
- Possibility of reversal is low
At the moment, the mood of market participants is mostly negative, but complete capitulation of buyers is still very far away, now focusing only on sentiment as a way to detect the bottom of the correction is not a good idea.
“In general, the current crypto market levels are optimal for the price of bitcoin to return to growth, however, in order for the market to turn around, a fairly long accumulation of volumes is needed, within a couple of months,”
If bitcoin continues to trade at current levels until early to mid-March, then it will be possible to talk about the formation of a bottom and the restoration of price of bitcoin with the first target at $45,000, and so far very few factors point to the possibility of a reversal.
“When buy bitcoin at current prices with the expectation of a recovery this year, you need to consider the possibility of another wave of decline to $30 thousand,” the analyst said.
The current price of bitcoin is acceptable in order to buy an asset based on its growth in the second half of 2022.
- The bearish cycle is not over
The market does not signal that the “bearish” cycle is over, says director of the Alfacash cryptocurrency exchange service, the next major surge of negative sentiment may occur after the March meeting of the US Federal Reserve, at which, with a 90% probability, a decision will be made to raise the key rate by 25 basis points.
Despite the fact that this expectation has already been partially taken into account in the bitcoin rate, such decisions always exert local pressure on the market situation, negative sentiment in the crypto market will continue to prevail, as the Biden president will be able to prepare a package of regulations regarding the regulation of cryptocurrency by the summer.
“Most likely, these projects will provide for some tightening in terms of user identification with a certain volume of transactions. Thus, the crypto market will have to go through more than one difficult week and month, ”
Brandt add now is a good time to increase investments in cryptocurrencies, In the long term, bitcoin has great potential for growth, the expert noted , at a distance, the most effective strategy is the portion purchase of assets: every two weeks or a month, buy a certain amount of coins, regardless of their price. This will evenly distribute the average cost of entry into the asset.
Buy bitcoin at current prices is highly risky, as the market is likely to see another wave of declines, warned Cryptorg CEO ,with the implementation of another wave of decline, the price of bitcoin will drop to $29-31 thousand.
The expert also spoke about an “apocalyptic” scenario, which provides for a collapse in the value of the cryptocurrency to $20,000. In this case, a lot of investors will close their positions, which will allow large players to buy a lot of coins.
