At the time of writing this post, the price of Bitcoin was threatening to drop to the $26,000 area, an action that on the one hand confirms the bearish projection of BTC and on the other hand, ratifies a highly correlated behavior with the price action that the stock markets have presented in the last week.
The truth is that, the price of Bitcoin plummets again validating what hundreds of analysts feared, as if the stock market continued to fall the most likely scenario was that the Bicoin would react the same way and apparently everything points to a continuation to bearish.
Paradoxically, it has been inferred that since last October the Bitcoin has been leading the markets, a behavior that gave the impression that far from the chaos of the traditional markets, the Bitcoin would be favored, but the outcome of the last hours is an indication that the cryptocurrency market will not be able to recover from the financial crisis that the world's economies are going through.
Investors and traders in the cryptocurrency market show their concern and some predict that the Bitcoin price may go to the $20,000 area, then run a sideways zone and plummet again, which will undoubtedly cause the whole market to panic.
Now beyond panicking, we must remember that all financial markets including cryptocurrencies execute this type of parabolic behavior, therefore, this drop should be viewed as we have seen them in previous cycles within the cryptocurrency market.
Consequently, I believe that we must create strategies that allow us to coexist in this new price collapse, I would like to know what actions you consider should be executed to be able to withstand a bearish continuity scenario.
SOURCES CONSULTED
CointeleGraph Bitcoin price drops to lowest since May as Ethereum market trades at 18.4% loss. Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: BeinCrypto
