Has Bitcoin reached its price floor? Experts answer

A number of investors and financial market experts see the recent collapse of digital currencies as an opportunity to increase their portfolio. Others have warned that investing is still risky in the current context.

To Report Kevin Telegraph, one of the most well-known investors in the digital currency market, believes that the market is rapidly approaching its price floor. Because of this, they think now is the time to buy digital currencies. However, one of these people warned that if prices fall below the set support levels, very bad conditions will arise.

Mike Novogratz, co-founder, chairman and CEO of the Galaxy Digital Institute, told the Morgan Stanley conference on June 13 that digital currencies may now have reached their bottom. According to his analysis, the atrium floor is probably at $ 1,000 and the bottom of the bitcoin cycle is around $ 20,000 to $ 21,000.

According to Novogratz, digital currencies are catching up faster than the US stock market. He says the stock price of American companies is likely to fall another 15 to 20 percent.

Novogratz said:

The Atrium price should be around $ 1,000 and is currently $ 1,200. The bitcoin floor is about $ 20,000 and $ 21,000, and its current price is $ 23,000. As a result, digital currencies are closer to what I expected than US stocks. Personally, I think the stock market will fall another 15 to 20 percent.

Former Bitmax boss warns of serious selling risk

Arthur Hayes, co-founder and former chairman of BitMEX, agrees. He announced on Twitter on June 13 (June 23rd) that in-chain data on Bitcoin Rapid Rapids (wBTC – Atrium Bitcoin Representative Token) and Atrium show that the expected liquidation of trading positions in the market has largely occurred.

However, Hayes warned that if the price of Bitcoin and Atrium fell below $ 20,000 and $ 1,000, respectively, the selling pressure in the immediate markets was likely to increase.

He said:

If Bitcoin and Atrium lose $ 20,000 and $ 1,000, respectively, we can expect a lot of selling pressure in the immediate markets; Because some traders try to protect their capital by doing so. In addition, actors who trade over-the-counter (OTC) and on a large scale may not be able to adequately cover their risk and go bankrupt.

Paul and Scaramucci are still waiting

Raoul Pal, a well-known investor and former CEO of Goldman Sachs Bank, is using the recent market downturn as an opportunity to boost its digital currency portfolio.

He told his 956,000 followers on Twitter on June 14 that bitcoin had reached the buying area. He himself plans to add significantly to his digital currency trading opportunities, and he will probably do so from next week until July.

According to former Goldman Sachs CEO, the impending decline of bitcoin can also be seen in the relative strength index (RSI) on a weekly basis.

Paul said:

The weekly bitcoin RSI is at level 31 and the floor is 28, which indicates that the bitcoin floor is not far away. However, never think that you can identify the bottom of the bitcoin with complete confidence and hit the target. The Tom DeMark sequential index on a weekly basis shows that the bitcoin floor will be available in the next week or five weeks.

It is worth mentioning that at present, the bitcoin RSI has fallen below the expected level of Paul and is located in the 26th zone.

Investors use the RSI index to measure the speed and magnitude of price changes. Using this index, you can also specify sales saturation or purchase saturation areas. If the RSI index reaches 30 or lower, the digital currency will be in the saturation zone and it can be said that the price is relatively low.

“In his context, the price of digital currencies often falls by 60 percent over the long term,” he said.

In fact, the best way to optimize profits is for investors to add a significant amount to their investment when the market reaches key points.

Anthony Scaramucci, founder of Skybridge Capital, told CNBC’s Squawk Box program on June 13 that investors should keep their digital currencies in check during the downturn. He announced in the program that his fund still intends to increase its Bitcoin and Atrium inventory.

He said:

We bought more Bitcoin and Atrium with the extra cash in our box. So yes! To be honest, people later look at the past and the fall of these days and say, I wish we had money to buy then.

Novogratz is now less excited about investing and has taken a more conservative approach. According to him, it is probably not yet time for traders to invest a lot of capital in the market; Because the world economy may fall further.

He continued:

I do not think it’s time for me to really invest a lot of money until I see the Federal Reserve shake itself, until the economic situation is very bad and the Federal Reserve does not stop raising interest rates and thinking about lowering them.

Another indicator that shows whether or not digital currencies are nearing their peak is the index of fear and greed. The index is currently at 7% and shows the intense fear of traders. It is worth mentioning that the fear and greed index last reached this region on May 17 (May 27) and when the Tera network collapsed.

At the time of writing, Bitcoin and Atrium are priced at $ 20,200 and $ 1,030, respectively.