On the heels of a rather disappointing performance by Bitcoin (BTC), market participants are speculating about a potential dip to prices around the $20,000 area. While some might view the current market pause as a disheartening trend, others endorse this situation as an optimal opportunity for growth.
After a somewhat lackluster 24 hours for BTC, with the $27,000 line becoming increasingly out of sight, now all eyes have turned towards the crypto coin’s viability. The lukewarm response trailing the US Federal Reserve’s interest rates pause offering, a small comfort for Bitcoin bulls given the $700 dip experienced the previous day, is indicative of a more conservative outlook settling in.
Scepticism towards these scearios runs deep, as some suggest that the inevitable collision between certain moving averages – referred to ominously as the death cross – is bound to affect the Bitcoin performance detrimentally. The anticipation of a collision between the 21-week and the 200-week moving averages is particularly unnerving for market spectators.
Arguments for this bearish Bitcoin market outlook are fortified further by the impending liquidation of crypto assets from defunct exchange FTX. The injection of these liquidated crypto assets into the market could potentially add an unwelcome selling pressure on BTC.
On the other side of the fence, however, the grim state of affairs has led a number of traders and analysts to believe that they are witnessing the birth of Bitcoin’s next bull market. A belief, largely fueled by the notion that Bitcoin’s current market environment may present investors with prime buying opportunities. According to recent data analysis, the months of September have historically delivered Bitcoin losses every year.
The ubiquity of such conflicting beliefs and predictions surrounding Bitcoin is proof of one thing: the importance of treading with caution and conducting sufficient and thorough research, especially in an environment filled with risk, before making any substantial investment moves.
Source: Cointelegraph
