{"id":390585,"date":"2022-01-07T00:15:40","date_gmt":"2022-01-06T21:15:40","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-why-bitcoin-traders-say-a-drop-to-38k-is-the-worst-case-scenario\/"},"modified":"2022-01-07T00:15:40","modified_gmt":"2022-01-06T21:15:40","slug":"heres-why-bitcoin-traders-say-a-drop-to-38k-is-the-worst-case-scenario","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-why-bitcoin-traders-say-a-drop-to-38k-is-the-worst-case-scenario\/","title":{"rendered":"# Here\u2019s why Bitcoin traders say a drop to $38K is the worst case scenario"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36648799726\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36648799726\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-bitcoin-traders-say-a-drop-to-38k-is-the-worst-case-scenario\/#Bitcoin_could_bottom_between_38000_and_40000\" >Bitcoin could bottom between $38,000 and $40,000<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-bitcoin-traders-say-a-drop-to-38k-is-the-worst-case-scenario\/#BTC_attempts_to_establish_a_higher_low\" >BTC attempts to establish a higher low<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-bitcoin-traders-say-a-drop-to-38k-is-the-worst-case-scenario\/#BTC_price_is_in_the_%E2%80%9Cgolden_pocket%E2%80%9D\" >BTC price is in the \u201cgolden pocket\u201d<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Here\u2019s why Bitcoin traders say a drop to $38K is the worst case scenario <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>The fallout from the Federal Reserve&#8217;s recent\u00a0hawkish comments about raising interest rates as soon as March continued to weigh heavily on the cryptocurrency market on Jan. 6. The Crypto Fear &amp; Greed index has been dialed down to 15 and some traders are lamenting the possible start of an extended bear market.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/c196298d-f1b4-449d-85f8-cfeb7a5eecd4.png\"><figcaption style=\"text-align: center;\"><em>Crypto Fear &amp; Greed Index. Source: Alternative<\/em><\/figcaption><\/figure>\n<p>Data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/\">TradingView<\/a> shows that bears attempted to challenge the lows set on Jan.5, bringing BTC price down to $42,439 during early trading on Jan. 6.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/6b87c724-c1a6-4577-b8e6-62174709f473.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USDT daily chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Let&#8217;s take a quick look at where analysts think the price might go in the next few days.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_could_bottom_between_38000_and_40000\"><\/span>Bitcoin could bottom between $38,000 and $40,000<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-01-06\/mike-novogratz-sees-bitcoin-finding-bottom-at-38-000-40-000\">According<\/a> to Mike Novogratz, the CEO of Galaxy Digital Holdings and a staunch cryptocurrency advocate, this latest move down \u201chas been on low volume\u201d and highlighted the fact that there is a \u201ctremendous amount of institutional demand on the sidelines.\u201d<\/p>\n<p>As for whether or not Novogratz sees the current market conditions as a good buying opportunity, the experienced trader told CNBC that \u201che\u2019s waiting a little longer to buy crypto\u201d and suggested that the market will \u201cbe volatile over the next few weeks.\u201d<\/p>\n<p>Novogratz said, <\/p>\n<blockquote><p>\u201cBitcoin could find a bottom at the $38,000 to $40,000 level.\u201d <\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"BTC_attempts_to_establish_a_higher_low\"><\/span>BTC attempts to establish a higher low<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A closer look at the recent BTC price action was offered by crypto analyst and pseudonymous <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> user Rekt Capital, who <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/rektcapital\/status\/1479076198147837952\">posted<\/a> the following chart comparing the current market conditions to those that were seen the last time BTC price fell below its 50-day exponential moving average (EMA). <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/63428778-000a-475c-b1bf-4a28112a5fe8.jpg\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-week chart. Source: Twitter<\/em><\/figcaption><\/figure>\n<p>According to Rekt Captial, BTC \u201chas deviated below the blue 50 EMA\u201d and is now in the process of trying to set a new higher low (HL) as represented by the green dashed line. <\/p>\n<p>Rekt Capital said, <\/p>\n<blockquote><p>\u201cIn May 2021, BTC also formed a Higher Low (orange) upon deviating below the 50 EMA. BTC held the HL initially but wicking below it was common also.\u201d<\/p><\/blockquote>\n<p>Based on the circled section provided on the above chart, Rekt Capital sees the possibility of BTC dropping down into the $40,000 range. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Bitcoin price bounces off $42K as order book imbalance turns &#8216;crazy&#8217;<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"BTC_price_is_in_the_%E2%80%9Cgolden_pocket%E2%80%9D\"><\/span>BTC price is in the \u201cgolden pocket\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A final bit of analysis highlighting the critical junction the market is in was provided by independent market analyst Scott Melker, who <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/scottmelker\/status\/1479147217164582916\">posted<\/a> the following chart showing BTC trading between the 0.65 and 0.618 Fibonacci retracement levels. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/b5fa6e66-f5dc-4481-bb76-9c2ded924cb1.jpg\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-day chart. Source: Twitter<\/em><\/figcaption><\/figure>\n<p>According to Melker, this range is known as the \u201cgolden pocket\u201d and \u201cis considered the most viable place too long or short an asset and look for a reversal.\u201d<\/p>\n<p>Melker said, <\/p>\n<blockquote><p>\u201cPrice is currently in the golden pocket of the move from $28,600 to $69,000.\u201d<\/p><\/blockquote>\n<p>The overall cryptocurrency market cap now stands at $2.077 trillion and Bitcoin\u2019s dominance rate is 39.5%.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/here-s-why-bitcoin-traders-say-a-drop-to-38k-is-the-worst-case-scenario\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Here\u2019s why Bitcoin traders say a drop to $38K is the worst case scenario &#8221; The fallout from the Federal Reserve&#8217;s recent\u00a0hawkish comments about raising interest rates as soon as March continued to weigh heavily on the cryptocurrency market on Jan. 6. The Crypto Fear &amp; Greed index has been dialed down to 15&#8230;<\/p>\n","protected":false},"author":1,"featured_media":390586,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvYjAwZDVhNWMtNmM5OS00Mjg0LWE1MDctYjE3MWU5ODkyNGY5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74982,74863,75150,73785],"class_list":["post-390585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-btc-markets","tag-cryptocurrencies","tag-market-update","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/390585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=390585"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/390585\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/390586"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=390585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=390585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=390585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}