Summary:
- Mike Novogratz has warned the crypto community against picking price bottoms as it is dangerous.
- He also pointed out that most altcoins are down by over 80% from their highs, and the losses in the 2018 bear market were over 95%.
- Consequently, altcoins will likely drop by another 70% from their current levels.
- Robert Kiyosaki has also highlighted that market crashes could be an opportune time ‘for smart investors to become very rich winners.’
The CEO of Galaxy Digital, Mike Novogratz, has warned the crypto community against picking price bottoms during the ongoing bear market as it is dangerous. According to Mr. Novogratz, anyone attempting to time the crypto market bottom should do so gradually.
In addition, Mr. Novogratz highlighted that many altcoins are down by 80% from their recent highs. But more losses could soon follow, given that the 2018 bear market resulted in the same altcoins retracing by 95%. He, therefore, forecasted that altcoins could quickly fall by another 70% from their current levels. He said:
Alts are down over 80 percent from the highs.
In [2018] it was over 95 percent. That is down another 70 percent.
My point is picking bottoms is dangerous and if you do scale in slowly.
Bear Markets Turn Smart Investors into Winners – Rich Dad Poor Dad Author
In another Tweet, the author of Rich Dad Poor Dad, Robert Kiyosaki, highlighted that bull markets make stupid investors look smart. However, bear markets turn the same stupid investors into losers and smart investors into winners. He also pointed out that market crashes could provide opportunities for smart investors to become very rich winners.
Mr. Kiyosaki shared his insights on the mechanisms of bull and bear markets through the following tweet.
RICH DAD said “Bull Markets make stupid investors look smart. Bear Markets turn the stupid investors into losers and smart investors into winners.”Markets are crashing. Time for smart investors to become very rich winners. Take care
— therealkiyosaki (@theRealKiyosaki) May 21, 2022
Bitcoin Continues to Consolidate Between $30k and $28k
Concerning price action, Bitcoin continues to consolidate between the $30k resistance level and the $28k support level. The King of Crypto continues to trade in bear territory below the 50-day (white), 100-day (yellow), and 200-day (green) moving averages, as seen in the following BTC/USDT chart.
However, the daily MFI, MACD, and RSI are in oversold territory and could signal a continuation of consolidation or an attempt at reclaiming $30k as support.
But caution is advised longing Bitcoin given the bearish mood surrounding both the traditional and crypto markets due to various global central banks, including the US Fed, increasing interest rates to tame inflation.
Consequently, the consolidation being observed by Bitcoin could be the genesis of another drop to lower levels, such as the recent low of $26,700 or even lower to Arthur Hayes’ forecast of $20k.