Bitcoin at 10k again? It would be possible?
Market analyst and investor ‘CryptoWhale’ explicitly warned that Bitcoin is currently overbought and will inevitably retreat below the $ 10,000 level. The renowned analyst and trader tweeted that despite Bitcoin’s continued recovery, the drop will be huge and will bring prices back to levels not seen since August.
CryptoWhale said its comments are a warning to people driven by fear of losing (FOMO), who are buying Bitcoin at the top and hoping that BTC will exceed the $ 20,000 or more level.
“I am helping others not to buy at the top. If you think we will exceed 20K, then you must bet everything now. ”
The BTC market is driven by the volatile state of extreme greed and fear
CryptoWhale added that the drastic Bitcoin price movement in either direction it is highly likely due to the volatile nature of the cryptocurrency market.
Buying pressure goes up and down as quickly as selling pressure, with huge price differences between the two. As a result, most people are driven by FOMO, and any small setback can trigger a sale.
“As greedy as people are now, they are very afraid that they will feel in the future.”
Supporting this sentiment, data from the analysis website Alternative Crypto Fear and Greed Index shows that, since last week, the market has been in a state of extreme greed. With the highly volatile nature of the cryptocurrency market, the fear of losing (FOMO) leads people to increase buying pressure. The opposite causes irrational fear when people increase selling pressure as currency prices begin to indicate red numbers.
In extreme greed status, the index means that the market needs a correction. Other analysts, however, have argued that while the market may experience a downturn, it is not as dire as predicted by CryptoWhale.
In fact, and in light of the recent level-up retracement, analysts say Bitcoin is more likely to hit $ 18-20,000 before dropping to $ 12,000 as the lowest possible level.
Bitcoin continues to rise
Despite short-term price declines, senior commodity strategist at Bloomberg Intelligence Mike McGlone said that Bitcoin is on a path of price discovery and may continue to rise until 2021, due to increasing popular adoption.
“$ 20,000 #Bitcoin is the main obstacle to a market value of $ 1 trillion. The digital version of gold, but with a more limited offer and a history of adding zeros, appears to be in an early stage of price discovery and may simply continue its rise in 2021. Mainstream adoption is increasing. ”