Bitcoin (BTC) may be testing the $10,000, but more losses would not be unusual, says an asset manager on the 90th anniversary of the fall of Wall St. Louis.
In a Sept. 4 tweet, Raoul Pal said the drop in BTC prices in the last 24 hours was nothing out of the ordinary.
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„In post-halving bull cycles, bitcoin can often correct 25% (even 40%+ in 2017), driving traders out in the short term (or giving traders a chance on the short side),“ he wrote.
„Each of these was a buying opportunity – a DCA opportunity ahead?“
Pal was referring to „dollar cost averaging,“ which involves buying a certain amount of Bitcoin at regular intervals to slowly build a portfolio.
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As indicated by Cointelegraph, the practice has proven to be profitable for BTC, and the Square payment network has launched it as a consumer feature this year.
Comparing Thursday’s losses even with recent withdrawals from local highs, Bitcoin has come off less badly in the context of what the price indices would suggest.
However, the effect of the losses was a dramatic change in investor sentiment, according to the Fear and Greed Index. The index, only a few days ago firmly in its „greed“ zone, fell more than 30 points from 100 on Friday to 40 or „fear“ for the first time since July.
Markets fell on the anniversary of the Great Collapse of 1929
While analysts continue to see the potential for BTC/USD to fall to fill a gap in the USD 9,700 futures, through the macro markets, disturbing historical signals are appearing.
As commentator Holger Zschaepitz said on Friday, September 4 is the 91st anniversary of the day the markets began their rapid decline during the Wall Street crash.
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„Just to put things in perspective: After the fabulous gains in the stock market in the 1920s, the fall began just on September 4, 1929,“ he wrote.
As in 2020, the event followed several months of stock recovery; economist Irving Fisher infamously said just before stocks had „reached what appears to be a permanently high plateau.
Zschaepitz’s words come at a time when others are warning about the strength of gold, silver and the US dollar currency index. In the case of the latter, after days of gains that coincided with the selling pressure of Bitcoin Code prices, resistance is coming, says Cointelegraph Markets analyst filbfilb.
„Beware of this dump,“ he warned subscribers to his Telegram trading channel.
„The other markets are on their last legs. If they survive, then we’ll probably do well here. If they megacauge, you don’t want to be heavily leveraged on the long side.