Bitcoin traders say a drop to $38K is the worst case scenario

BTC’s drop to $40,500 sent a key sentiment indicator to an “extreme” low, but top traders are confident that a bounce off $38,000 would confirm the bottom.

The fallout from the Federal Reserve’s recent hawkish comments about raising interest rates as soon as March continued to weigh heavily on the cryptocurrency market on Jan. 6. The Crypto Fear & Greed index has been dialed down to 15 and some traders are lamenting the possible start of an extended bear market.

Data from TradingView shows that bears attempted to challenge the lows set on 8th Jan, bringing BTC price down to $40,500.

Let’s take a quick look at where analysts think the price might go in the next few days.

Bitcoin could bottom between $38,000 and $40,000

According to Mike Novogratz, the CEO of Galaxy Digital Holdings and a staunch cryptocurrency advocate, this latest move down “has been on low volume” and highlighted the fact that there is a “tremendous amount of institutional demand on the sidelines.”

As for whether or not Novogratz sees the current market conditions as a good buying opportunity, the experienced trader told CNBC that “he’s waiting a little longer to buy crypto” and suggested that the market will “be volatile over the next few weeks.”


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