There are those who explain, with arguments, why it can continue to fall to $10,000, and others who buy waiting for the jump.
Bitcoin’s weekend drop below the $18,000 barrier raised questions in the financial world about whether it still has a long way to go or if it’s time to jump in.
The scenario proposed by analysts, even though Bitcoin emerged above the psychological price floor of $20,000 on Sunday, is extremely disturbing.
According to data from CoinMarketCap, there are more than 19,000 types of cryptocurrencies, so it is very easy to get lost in this universe and be overwhelmed by the feeling that if you spend too much time looking for an opportunity, it will slip away.
Cryptocurrencies
According to Green Bond Meter (GBM) specialists, the analysis of cryptocurrencies differs from that known for traditional assets, because this class of digital assets does not have a publicly accessible balance sheet as if it were a publicly-traded company.
Hernán Aycaguer, the Financial Manager at GBM, recommends, first of all, avoiding the explicit purchase recommendations that others may make.
Acronym DYOR
“In the crypto world, the acronym DYOR (Do Your Own Research) is famous, that is, “do your own research”, remember and introduce: “It is key to look comprehensively at the project behind crypto, its age, who are its founders and how they have been financed”.
The specialist then suggests looking at Coin Market Cap or CoinGecko, two prestigious exchanges, for strategic indicators that allow price analysis.
Iñaki Apezteguia, professor and crypto communicator, adds that, unlike other bearish cycles in the crypto market, “this time we are facing a recession scenario fueled by a pandemic and war, which generates instability in the world.”
Downwards
In his opinion, Bitcoin has to continue its decline, finding a possible floor in the area of $12,000: “Bitcoin’s dominance is decreasing (today at 44%) and something atypical has even been seen and that is that Bitcoin has dropped by last 15 days more than other altcoins: BTC 31%, BNB 25%, ADA 19%, DOT 13%.”
To recover, Apezteguia thinks at least 120 days to correlate with other bearish cycles, but it may take longer.
Natalia Motyl, Chief Economist at La Crypta, a Bitcoin awareness organization, explains that many speculators who jumped in for quick profits are turning to safer, higher-yielding assets.
Below US$10,000
“Likewise, what happened with Luna, Coinbase, and Celsius generates a lot of mistrust that encourages the exit of the most inexperienced. Bitcoin can easily fall below $10,000 and there will be a cleaning of various cryptos that are going to tend to disappear,” she predicts.
But that, in part, is favorable because it will demonstrate the strength of Bitcoin and Ethereum: “As they are programmed, they are the future and as more people understand that it is a revolution that takes power away from governments, the higher its price will be in the future,” Motyl further explained.
High Volatility
Elsa Mercedes Ortiz, owner of Mechi Learning, warns that, although Bitcoin is used for its benefits, such as deflation, immediacy, and globalization, we must be vigilant against one of its main risks: high volatility.
“Even so, citizens in countries such as Argentina and Venezuela adopt it as a means of protection against hyperinflation. Mainly, adolescents do not think in dollars, but in Bitcoin; therefore, they are more prone to take advantage of this price offer to buy, while others sell positions, because it can fall up to US$10,000,” Ortiz concludes.
By Audy Castaneda
