Although Bitcoin prices have plummeted over the past week, many experts believe that the price of this digital currency will still generate a lower bottom line.
Based on the old price data of previous bear markets, Sam Callahan, the Swan Bitcoin analyst, commented that BTC could fall by more than 80% from its all-time high, similar to the $3,000 plunge in December 2018.
This means that Bitcoin could fall to its lowest level of $13,800 in the current cycle. However, analyst Callahan is not worried if Bitcoin falls deeply.
“It is important to note that Bitcoin’s current investment base is very different from previous bear market times. If BTC falls below $20,000, I think we will see large buying at low prices as BTC will increase further in the long term,” Sam Callahan said.
In May, Yuya Hasegawa, Bitbank’s market analyst, said Bitcoin could drop by $12,200. At this point, Yuya’s gaze was somewhat more optimistic.
“I think Bitcoin can go below $20,000 in the short term and recover quickly”, Hasegawa said.
In the opposite direction, Marcus Sotiriou, an analyst at Global Block, said Bitcoin would have more weakness if it fell below $20,000. This weakness revolves around the controversy regarding the Celsius lending platform, and the company will likely default and plunge into a liquidity crisis.
“Celcius is in big trouble. If Bitcoin and Ethereum whales are liquidated, this will lead to even more damage. I think many people are worried about an even more significant sell-off as the whales’ margin disposal price is now at the $17,000 mark, “Sotiriou commented.
The user will be called into escrow when the type of money mortgaged falls to a certain level. Similarly, in the stock market, investors owe money to lenders and brokers when assets fall in price. Cryptocurrency lenders use securities-like methods to protect their assets when Bitcoin prices plummet.
Forced liquidation occurs when the investor has insufficient assets to further mortgage. This can put selling pressure on the market, causing prices to fall and dragging many other positions into liquidation. Arthur Hayes, the Former CEO of BitMEX, noted that most works are not currently liquidated.
“If Bitcoin breaks the $20,000 mark and ETH falls below the $1,000 mark, a major sell-off will occur,” Arthur Hayes said.
According to BitMEX CEO, investors need to sell digital money on the spot to protect their positions as the market approaches the above price benchmarks.
After the collapse of the digital money market, data from Alternative shows that the Bitcoin Fear and Greed index hit the 8/100 mark on June 14. So far, the index is only 7/100 points when the Bitcoin price fluctuates around 22,469 USD/dong. This is the general psychological assessment of the investor. Currently, traders are in a state of extreme fear.
On June 11, the U.S. Department of Labor released an inflation index that hit 8.6% in May, which is the highest since December 1981. Shortly afterward, financial markets plunged massively. Recently, the U.S. Federal Reserve raised interest rates by 0.75% to counter inflation. This is also the highest increase in the last 28 years since the death penalty in 1994.
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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What happens if Bitcoin falls below $20,000?
Although Bitcoin prices have plummeted over the past week, many experts believe that the price of this digital currency will still generate a lower bottom line.
Based on the old price data of previous bear markets, Sam Callahan, the Swan Bitcoin analyst, commented that BTC could fall by more than 80% from its all-time high, similar to the $3,000 plunge in December 2018.
This means that Bitcoin could fall to its lowest level of $13,800 in the current cycle. However, analyst Callahan is not worried if Bitcoin falls deeply.
“It is important to note that Bitcoin’s current investment base is very different from previous bear market times. If BTC falls below $20,000, I think we will see large buying at low prices as BTC will increase further in the long term,” Sam Callahan said.
In May, Yuya Hasegawa, Bitbank’s market analyst, said Bitcoin could drop by $12,200. At this point, Yuya’s gaze was somewhat more optimistic.
“I think Bitcoin can go below $20,000 in the short term and recover quickly”, Hasegawa said.
In the opposite direction, Marcus Sotiriou, an analyst at Global Block, said Bitcoin would have more weakness if it fell below $20,000. This weakness revolves around the controversy regarding the Celsius lending platform, and the company will likely default and plunge into a liquidity crisis.
“Celcius is in big trouble. If Bitcoin and Ethereum whales are liquidated, this will lead to even more damage. I think many people are worried about an even more significant sell-off as the whales’ margin disposal price is now at the $17,000 mark, “Sotiriou commented.
The user will be called into escrow when the type of money mortgaged falls to a certain level. Similarly, in the stock market, investors owe money to lenders and brokers when assets fall in price. Cryptocurrency lenders use securities-like methods to protect their assets when Bitcoin prices plummet.
Forced liquidation occurs when the investor has insufficient assets to further mortgage. This can put selling pressure on the market, causing prices to fall and dragging many other positions into liquidation. Arthur Hayes, the Former CEO of BitMEX, noted that most works are not currently liquidated.
“If Bitcoin breaks the $20,000 mark and ETH falls below the $1,000 mark, a major sell-off will occur,” Arthur Hayes said.
According to BitMEX CEO, investors need to sell digital money on the spot to protect their positions as the market approaches the above price benchmarks.
After the collapse of the digital money market, data from Alternative shows that the Bitcoin Fear and Greed index hit the 8/100 mark on June 14. So far, the index is only 7/100 points when the Bitcoin price fluctuates around 22,469 USD/dong. This is the general psychological assessment of the investor. Currently, traders are in a state of extreme fear.
On June 11, the U.S. Department of Labor released an inflation index that hit 8.6% in May, which is the highest since December 1981. Shortly afterward, financial markets plunged massively. Recently, the U.S. Federal Reserve raised interest rates by 0.75% to counter inflation. This is also the highest increase in the last 28 years since the death penalty in 1994.
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.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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