Bitcoin’s volatility is often the talk of the town in the crypto space. Just recently, the asset spiked past the $5,000 mark bringing the attention of investors, traders and the general public to this nascent space, Currently standing at around $5,372 with a %0.71 increase in the past 24 hours, where is this asset expected to go? Economist and Trader, Alex Krüger, has a probable answer to this question.
Maximum pain scenario for $BTC:
– shoot through to $6000
– rest right above $6000, luring longs in
– dump back down to $4000s in 2 days
– have everyone scream “this is The End”
– slowly move back up
The asset is clearly moving up consistently making slow but steady gains over the past several days. With the trend that it is showing, it might just cross the $6k mark in the very near future.
SEE ALSO: Forget $6,000, Bitcoin (BTC) Price Might Hit $7,000 Soon
But alongside the possibility of rising, there is also a chance that the asset will fall back into the $4,000s once again, as pointed out by Alex. As suggested by GalaxyBTC in a tweet:
Based on this daily fractal we should get another chance to buy $BTC at $4600-$4800 levels before the next run to $6800.
Similarities in both candles and volume.
The following figure shows the graph used by GalaxyBTC in order to make the above interference:
From all this data, one can infer that it might just not be the best time to buy the asset for investment yet. If one wants to invest in this asset for long-term gains, waiting until the asset drops below the $5,000 mark might just be the wisest move for now.
The price volatility associated with bitcoin is unknown to none familiar with it. One day its price is seen going up with the entire market showing major greens and the very next day it is down on its knees resulting in the loss of large amounts of investment money. On one hand, volatility is something highly undesired if this asset is to gain mainstream adoption among huge financial institutions, but on the other hand, it is the exact same thing that attracts investors into this space who want to gain a quick buck.
Although things are seeming pretty bright for the asset right now, you should probably wait for the asset to fall down in its price before buying it. But anything can happen in this fast-paced universe. So everyone just wants the best for himself…right?
SEE ALSO: $4,600-$4,800 Bitcoin (BTC) Price Range to Buy, Stay Alert Suggests Analyst