Bitcoin (BTC) may test $ 10,000, but further losses would not be uncommonsays a money manager on Wall Street’s 90th anniversary
In a tweet on September 4th Raoul Pal The BTC price drop in the past 24 hours is nothing unusual.
Pal sees the opportunity to buy from Bitcoin
“”In bull cycles after the halving, Bitcoin can often correct 25% (even 40% + in 2017) and drive off short-term traders (or give the dealers a shot on the short side), “he wrote.
“Each of these was a buying opportunity. A DCA opportunity ahead? “
Pal was referring to the “dollar cost averaging” investment, the involves buying a certain amount of bitcoin on a regular basis to slowly build a portfolio.
As Cointelegraph noted The practice has proven profitable for BTCand the Square Payments Network launched it as a consumer feature this year.
Even comparing Thursday’s losses to recent withdrawals from local highs, Bitcoin has fared less badly in the context of price indices.
Comparison of Bitcoin price withdrawals. Source: ChartsBTC / Twitter
However, The losses had a dramatic effect on investor sentimentaccording to the index of fear and greed. The index, which was firmly anchored in its “greed” zone only a few days ago, fell from 100 on Friday by more than 30 points to 40, or “fear” for the first time since July.
Crypto Fear Greed Index as of Sept. 4, 2020. Source: Alternative.me
Markets fell on the anniversary of the great collapse of 1929
While Analysts continue to see the potential for BTC / USD to fall to fill a gap in futures at $ 9,700Disturbing historical signs appear due to the macro markets.
As the commentator suggested Holger Zschaepitz on Friday, September 4th marks the 91st anniversary of the day markets plummeted during the Wall Street crash.
“Just to put things in perspective, after the fabulous stock market gains in the 1920s, the crash didn’t begin until September 4, 1929,” he wrote.
Like in 2020 The event followed several months of inventory recovery;; Economist Irving Fisher recently said that stocks have “hit what appears to be a permanent high plateau.”
Zschaepitz’s words come when others warn of the strength of gold, silver and the currency index of the US dollar. In the latter case, resistance comes after days of gains that coincided with selling pressures from Bitcoin prices, says filbfilb, an analyst at Cointelegraph Markets.
“Beware of this dump,” he warned subscribers to his Telegram trading channel.
“The other markets are in the last. If they survive, we’ll likely do well here. When they crash, you don’t want to be used heavily on the long side. “
Daily US dollar currency index graph. Source: TradingView
At the end of this issue, Bitcoin traded up to $ 10,400 after a modest rebound from lows of $ 10,090with daily losses of almost 9%.