Most of the cryptocurrency traders believe that the price which is being indicated by a technical indicator by the name of death cross is about to come. The technical indicator is showing a prize of $ 2800. This is the reason why many of the traders think that Bitcoin will actually fall to those levels. Bitcoin is already falling considerably from the top.
Trading near 200 day DMA:
Currently, Bitcoin is trading near the 200-day average. This means that if it is breaking the 200-day average, it can head down pretty further. According to death cross technical indicator, it can fall all the way to $ 2800. This will be a fall of around 85% from the recent peaks. This is the reason why many of the cryptocurrency traders are actually worried about the price of Bitcoin.
According to a cryptocurrency expert, Annie Massa, as the volatility in cryptocurrency increases, more and more traders might stay away from it. In case, traders think that it is too volatile, the investments in Bitcoin will fall down significantly. Any loss of momentum at the current stage in Bitcoin can make it fall further through the bottoms which it has recently created. This is the reason why many traders are worried about Bitcoin. If indeed, these levels are broken, the downside is immense. That is why; many of the traders are scared of trading in Bitcoin currently.
For now, however, Bitcoin is trading around $ 8000 mark. It has headed these levels for the last 48 hours. However, the base which it has made recently is pretty close by as well. This means that a single negative trigger can easily pull Bitcoin below these levels. Once the peak breaks, it will be very difficult for it to stop till $ 5500 which was the low this year. This is the reason why many of the traders are actually worried whether Bitcoin will be able to sustain those levels are not.
As a trader, now is the time to stop trading in the shorter term at least. The volatility in cryptocurrency is immense. This is the reason why you have to trade cautiously as well. Only when you are completely aware of what you’re doing, it is a good enough idea to opt for trading in the cryptocurrency. Otherwise, you have to just adopt the wait and watch mode for now.
Many of the long-term investors are also scared of investing in Bitcoin currently. They do not know whether now is the right time or whether they should wait for a further fall to invest in Bitcoin.