Bitcoin could go down to “Max Pain” at $ 8,000

Bitcoin could go down to “Max Pain” at $ 8,000

Elon Musk talks about “Cryptonight” (crypto-currency night); elsewhere, others refer to the “cryptocurrency winter”. But whatever phrase we use, it refers to this gloom in the crypto market, a gloom that hits the first of them, bitcoin, first. And everything shows that we have not reached the bottom yet, with bitcoin focused on “Max Pain”.

Dips in bitcoin (BTC) and other altcoins

Scott Minerd, Guggenheim’s Chief Investment Officer, predicted a crypto winter that could last longer and bitcoin could fall to the $ 8,000 Max mains.

Following last weekend ‘s upheaval, bitcoin is set to stabilize at about $ 22,818 at the start of the week. This price represents a 17.34% drop in less than a day, as BTC lost about $ 5,000 from the previous week’s support. As the market currently stands, the $ 22,818 line is not support, but resistance that bulls find difficult to defend.

Same scenario for the ether and other altcoins all stuck in cryptocurrencies. Ether is currently trading at $ 1256, representing a value loss of 17.69%. SOL fell 15.64%, BNB lost 13.11% of its value and ADA also lost its value (-10.57%). The list of double digit value losses extends to most altcoins: Bitcoin Fold, Dogecoin, Polkadot, Polygon…

Same hard season for companies carrying cryptocurrencies on their balance sheets. Shares of MicroStrategy fell 28% as Michael Saylor’s company has more than 120,000 BTC in capital. The same is true for mining companies like Riot Blockchain Inc and Marathon Digital Holdings Inc which saw a fall of 16% and 19% respectively.

Understand the market and survive the winter

Several events have caused the death knell in which cryptocurrencies have been discovered. Celsius has paused withdrawals, swaps Between an account and a transfer, the market, which still suffered the trauma of the Luna / Terra crash last month, went into a panic, leading to strong liquidation of some cryptocurrencies. As a result, the overall market capitalization fell below the $ 1 trillion mark. Last week ‘s inflation data only added to this sense of insecurity that has plagued investors.

How long will all this last?

There does not seem to be a short – term bullish outlook as, as Steven McClurg, co – founder of Valkyrie Investments, said, ” It lacks the basics to support stabilization and recovery and, of course, ” Things can and probably will only get worse before they get better “.

The main advice given by analysts is to make an exception to the rule of bottom purchase. Rick Bensignor from Bensignor Investment Strategies will recommend:

If you take a long stand, you might consider doing it with a long range of calls or short spreads to limit the risk. ”as “If it falls, there is no reliable support nearby “. Same advice from Peter Schiff, financial commentator for his 700,000 followers. […] Do not buy this dump. You will lose a lot more money ”.

This is advice that the usual buyers on the decline, such as El Salvador or Scott Minerd’s company, are already applying for. They refrain from increasing their balance and prefer to look for positive signs on the market horizon. The job market in the cryptocurrency sector is also feeling the brunt of the storm: some companies in the sector are in the process of reducing their workforce. This is the case for BlockFi, Coinbase and Gemini.

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