Some of the most famous investment gurus in the cryptocurrency space believe that a market bottom is rapidly approaching and now is the right time to buy – although many still warn of dire outcomes. if the price falls below the established support level.
Mike Novogratz thinks the market is close to the bottom
Billionaire Mike Novogratz, founder, chairman, and CEO of digital asset merchant bank Galaxy Digital Holdings said at the Morgan Stanley conference on June 13 that cryptocurrencies could be close to bottoming out, with ETH likely to hold at $1,000 and Bitcoin around $20,000 to $21,000.
Crypto bottoms will emerge faster than U.S. stocks — possibly another 15% to 20% drop, according to Novogratz.
“We’ve gotten to levels that I think should be close to the bottom – $20,000 Bitcoin, $1,000 Ethereum.”
Hayes warns of sell-off risk
Arthur Hayes, co-founder and former head of BitMEX has a similar investment view, admitting on Twitter on June 13 that on-chain data for Wrapped Bitcoin (wBTC) and ETH indicates that “most are liquidation”.
However, Hayes warned if BTC and ETH break the $20,000 and $1,000 support levels respectively, we could warn of “massive selling pressure in the spot market.”
Raoul Pal and Anthony Scaramucci: Now is the time to accumulate
Macro investor Raoul Pal is seeing the recent market downturn as an opportunity to add to his investment positions. On June 14, Pal said that “we are in a buy zone” for Bitcoin and ready to “significantly” add to his positions “probably starting next week and into July.”
According to the former Goldman Sachs exec, an impending Bitcoin bottom can also be identified through the weekly Relative Strength Index (RSI). The RSI is currently at 31 and moving closer to its all-time low at 28.
RSI is a metric used by investors to measure the speed and extent of price changes, which can indicate overbought or oversold conditions. According to Investopedia, an RSI of 30 or less reflects oversold conditions and undervalued conditions.
Skybridge Capital founder Anthony Scaramucci told CNBC’s Squawk Box on June 13 that investment funds should “remain disciplined” amid the cryptocurrency plunge, noting his fund continues to add Bitcoin and ETH into the investment portfolio.
Other indicators that can shed light on whether the cryptocurrency is nearing a market bottom is the Fear and Greed Index, currently at 7 – i.e. “Extreme Fear”, last seen around the time LUNA is collapsing, on May 17.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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