On May 12, Bitcoin (BTC) decided to play a game of whack-a-mole, bouncing back from its realized price of $24,000 like a rubber ball. Apparently, some brave bulls took a leap of faith to buy the dip, trying to swim against the tide. According to CryptoQuant, an on-chain analytics platform, the balance on exchanges plummeted by over 24,335 Bitcoin on the 11th and 12th—a sign that these bulls might not be your average ride-or-die hodlers.
Raoul Pal’s Skepticism
Despite the short-term bullish movement, big-time macro investor Raoul Pal isn’t tossing confetti just yet. In a special chat with Cointelegraph, Pal threw some cold water on the optimism, warning that if equity markets dive for the deep end, the crypto realm is likely to follow suit. He predicts that the current bear market is only going to pack up and leave once the U.S. Federal Reserve lays down the rate hike hammer for good.
Bullish Rallies in Bear Markets
One of the classic traits of a bear market is the sharp relief rally. These spikes often serve as a moment of clarity for traders to lighten their long positions or dive into short positions. Unfortunately, this often turns out to be a false sense of security, as prices tend to retreat, setting new lows like they’re putting on a performance art piece titled “How Low Can You Go?”
Investing Strategy During the Dip
Now, let’s talk strategy. Given that bottoms are confirmed only in hindsight (cue the facepalms), it’s wiser for investors to gradually accumulate rather than going all-in like a kid at an all-you-can-eat buffet. Consider adopting a phased accumulation strategy so you aren’t left clutching a hefty bag if the market takes another nosedive.
Identifying Resistance Levels
As we venture further down this rollercoaster ride, investors remain eager to pinpoint crucial overhead levels that might become resistance. Understanding these thresholds is essential to navigating through the turbulent waters of cryptocurrency investment. Let’s dive into the charts of the top-10 cryptocurrencies to sniff out these resistance levels.
Charts Tell the Story
- Bitcoin: Understanding critical resistance at $28,000
- Ethereum: Eyeing $1,600 as a significant hurdle
- Ripple: Resistance lurking around $0.55
- Litecoin: Watching closely at the $100 mark
In conclusion, while Bitcoin’s recent bounce from near its realized price of $24,000 is certainly a glimmer of hope, experts like Pal remind us to keep our eyes peeled for potential downturns. Keeping a cool head and a strategic pad of paper might just save you the headache when the market decides to take another tumble.
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