Experienced Analyst Speaks After Bitcoin’s Drop: “I’ll Start to Worry If the Price Falls Below This Level”
Cryptocurrency analyst Joao Wedson evaluated Bitcoin's recent 5% price drop, suggesting there's no need for panic despite market volatility. Bitcoin, trading at around $101,000, is in a consolidation phase unless it falls below $92,000, which could signal a downtrend. Wedson emphasized that volatility in the crypto market is normal due to its smaller total market capitalization compared to major tech stocks. He also noted similarities between Bitcoin's current price chart and the 2022 bottom formation using the 'Alphractal's Fractal Identifier,' indicating historical price patterns often repeat. This is not investment advice.
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Bitcoin Price and Market Volatility
Cryptocurrency analyst Joao Wedson, while evaluating the recent drop in the Bitcoin price, argued that there should be no panic despite the current volatility of the market. At the time of writing, Bitcoin is trading around $101,000 and has lost 5% of its value on the day. Wedson stated that if Bitcoin doesn't fall below $92,000, the current price action could be considered merely sideways.
Critical Threshold for a Downtrend
According to Wedson, a drop below $92,000 could signal that the market enters a “true downtrend.” However, he emphasized that Bitcoin is currently in a consolidation phase, and he argued that volatility in the crypto market shouldn't be exaggerated.
Investor Sentiments and Market Behaviors
The analyst noted an increase in the number of investors complaining about market volatility. He highlighted that the total market capitalization of crypto assets still lags behind that of major tech stocks. According to Wedson, this discrepancy demonstrates that price volatility is a natural and expected phenomenon in the crypto market.
Historical Price Patterns in Bitcoin
Wedson also argued that Bitcoin's current daily price chart bears a near-identical mirror image of the 2022 bottom formation. He said he identified this similarity using an analysis tool currently under development called “Alphractal's Fractal Identifier.” He explained that historical price movements tend to repeat themselves, sometimes even in the opposite direction.