The trader and analyst of cryptocurrencies who correctly predicted many months ago that the price of Bitcoin (BTC) would fall below $23,000 are now giving a new warning about the most popular digital asset.
In an update to a previous analysis where he laid out two possible futures for Bitcoin, Capo says that the most crucial cryptocurrency asset has chosen the bearish future, which could cause the price to drop below $21,000. He analysed it because he had already thought about these possibilities in a previous analysis. In the other scenario, Bitcoin’s price went up very quickly.
“BTC. The second option is being considered. Buying is a good idea whenever the price tries to break through the $23,500 resistance level. Consolidation below $22,500 would be a bad sign because it would mean that the price could go as low as $21,000 or even lower.
The cryptocurrency expert said that a price of $23,500 would be a significant barrier and bring Bitcoin closer to the important area of $20,000.People who invest in cryptocurrencies should know that the market could soon go through at least one more big correction.
In fact, bitcoin has been worth less than $20,000 in the last few weeks. This is a crucial price point, and experts are still arguing about whether it will drop as it did in 2013 and 2017, when it dropped 85% from its high. In the past few days, Ethereum, the second most valuable digital currency, has been going up more than bitcoin. On Tuesday, it was worth more than $1,500.
Will there be another drop in the value of cryptocurrencies?
Many analysts are worried that we are already in the middle of another crypto winter. Analysts think crypto prices will stay low for the foreseeable future, just like they did from the beginning of 2018 to the middle of 2020. This is because the market went down, people lost their jobs, and the crypto business still has a liquidity problem.
Terraform Labs was the first company to fail because of a bear market, a drop in the price of cryptocurrencies. Since then, money has been lost by more businesses. Due to these changes in the market, Three Arrows Capital, a hedge fund that invests in cryptocurrencies, may have to shut down.
Alarms started going off recently, significantly when the price of bitcoin dropped below $19,700. Wendy O, a crypto expert and teacher, says that if the same thing happens again, Bitcoin could fall below $17,600. She says that if that happens, it will get scary.
The cryptocurrency market has crashed before and will likely do so again. You should be ready because of this. Because cryptocurrencies are known to be unstable and risky, investors may see market changes of more than 50% in a couple of months and price increases of up to 15% in 24 hours. Here are some things you can do to keep your money safe in the volatile and uncertain cryptocurrency market:
Pay the most attention to your budget, debt, and savings
Before investing in cryptocurrency, you should ensure your budget, debt, and savings are in good shape. If you have a good budget and an emergency fund, you can rest easy knowing that you can still reach your financial goals. This will help you worry less about how your investments are doing.
But most financial experts agree that you should have enough money to cover your expenses for at least three months. If you don’t have a well-stocked emergency fund, don’t buy cryptocurrency. Instead, start saving a little bit of money every month until you have enough to start a fund. Check out this platform for information on investments and trading.
You should take some precautions before the market goes up and down to keep your money safe. The best way to reach this goal is to have a wide range of investments in your portfolio. You should only have a small amount of your portfolio in cryptocurrency if you want to reach your long-term financial goals. The rest of your portfolio should consist of stocks, bonds, and mutual funds.
Experts say that while prices are low, now might be a good time to invest in cryptocurrencies. But keep in mind that prices could drop even more in the future. Most people in the financial world agree that bitcoin and Ethereum are suitable investments.