Bitcoin: BTC at 20000 USD is already the bottom - says analyst
Prominent crypto analyst Cred says that Bitcoin (BTC) price may have bottomed around $20,000 in a market correction due to unprecedented factors.
In a new market analysis on Youtube, Cred says that the trading price of BTC may not drop any lower, but if it does, he says it won't matter in the long run.
“I think $20,000 is a good price. Is it necessarily the best price? No. Does it matter if it's the best price or not? Absolutely not. For example, if you bought Bitcoin in 2018 for $6,000 and it dropped to $3,000, you might feel like a complete idiot buying at six and now three. However, he would probably feel pretty smart if he took it and saw it go all the way to $69,000.
I think a similar analogy could be extended to some kind of $20,000. It's a coin toss if this is a generational bottom or not and where the market really ends. But I think over a long enough period of time, if you're right about crypto or if you're interested in crypto, you probably won't regret buying $20,000. It just depends on their volatility and tolerance for a drop in the interim. "
Cred supports a "generational bottom" price target by pointing to the factors that have led to an ongoing market correction. He said that the market is reacting to possible once-in-a-lifetime consolidation of factors, creating opportunities for investors.
“It should be noted that macro-wise, in cyclical terms or long-term multi-cycle cryptocurrencies, these are not terribly expensive prices. And also in terms of the macro context, actually, I know right now that's terrible and the Federal Reserve is raising interest rates and inflation is high and the dollar is strong and this, that, that. But if we move out, in our investing careers and trading lives, if we're honest about it, how many correction cycles can we have?
How many times will these incredibly unique conditions be repeated when we will have a complete shutdown and new COVID economics, hyperinflationary monetary and fiscal policy post-COVID mad? And then the frenzied inflation and the strict correction that followed? I mean the sequence of events is so confusing that practically speaking, we can only have one event in our lives.
So even when we look at credit cycles and liquidity cycles in general, we are talking about a very small number of these types of adjustments that take place over our lifetime. Cryptographic fixes, yes, can and will happen more often. But considering all this large basket of macro liquidity involved in trading, I think the number of times we have to go through this in our lifetime is very, very low. And so it also offers an opportunity, especially if it can withstand some hardship. "
Cred said that he is looking for certain signals to determine when a BTC bull run could form.
“I want the previous cycle's all-time high of $19,900 to $20,000 to stop acting as resistance and act as support. I think that will set the trend for day trading towards the midpoint of the range at $21,000. And then maybe as high as, I know that sounds depressing, but it could go up to $23,000 to $24,000 if that's the high band. "
Bitcoin is trading at $20,216 at press time, a positive change of nearly 4% on the day.
Oct 06, 2022