Bitcoin continues to test lower levels as it breaks below the $ 42,000 levels at the beginning of the weekend. While it is difficult to predict whether or not the fall will continue, a number of useful indicators can help us decide on the next stage of action.
The bitcoin fear index has fallen to its lowest level since July 2021. This indicates a great fear among bitcoin investors and based on historical trends, this may be a good time for buyers bitcoins falling bitcoins.
The Fear and Saint Crypto Index fell to 10, the lowest since July 21, 2021. pic.twitter.com/ZNbTnuH3cb
– Wu Blockchain (@WuBlockchain) January 8, 2022
Benjamin Cowen, another cryptoQuant market analyst, said: “ We usually don’t go that low for fear (for bitcoin). If we go back here, I’m not sure we will visit these prices again, but short – term relief would be welcome. “The daily RSI is also technically oversold, in theory $ 40k- $ 42k is a support zone“.
Speaking on US CNBC channels recently, Mike Novogratz, founder of Galaxy Digital, said bitcoin could be looking up at either $ 40,000 or $ 38,000. Novogratz believes that institutional players are waiting for entry at this level, as new capital could be seen flowing in very soon.
“I know big institutions that are going through their process of promoting jobs. They will look at those as attractive levels to buy,” he says. @nuagratz on call #bitcoin at the bottom of $ 38,000. pic.twitter.com/wsUM68Fvpx
– Soscawk Box (@SquawkCNBC) January 6, 2022
Major bitcoin stocks to watch
According to a report from Glassnode, some of the best whale launchers have already started buying the immersion ! Of the top 100 Bitcoin launches, three increased their holdings by a minimum of 1000 BTC.
Also, despite the current downward trend, the liquid supply of bitcoins is on the rise. This means that many bitcoin hoardings occur and are transferred from exchanges from HODLers. This clearly shows that bitcoin bulls are quite positive about the long-term outlook for the cryptocurrency.
It will be interesting to see whether or not bitcoin reverses its downward trajectory. But given that bitcoin has already corrected 40% from its record high of $ 69,000, this could be a good buying area for investors.