Though the world’s first cryptocurrency, Bitcoin had reclaimed its $30,000 just a day before, the currency has yet again plunged below its $30k level trading around $28,000.
This price action by Bitcoin has affected the altcoin lead, Ethereum as well which is trading around 1,500 range with a plunge of more than 4%.
Meanwhile even the global crypto market cap has been pulled back by 3.65% trading around $1.23 trillion over the last 24hrs.
Alternative.me’s Crypto Fear and Greed Index fell to a 30-month low of 8/100, roughly equivalent to where crypto markets were before the “Xi Spike” of Q3, 2019.
At the time of writing, the market is still trapped under Extreme Fear signal whereas the index is positioned at 11/100.
Meanwhile at the press time even Bitcoin has slipped by 3.39% over the last 24hrs and is now trading around $29,000.
Many experts are predicting that Bitcoin will bottom around $25,500 by this weekend if the bulls don’t get back.
Bottoms Picks Are Dangerous
A well-known cryptocurrency trader and entrepreneur Michael Novogratz look back to the 2018’s crypto winter times when the major altcoins had lost 95% when in comparison with the highest level seen during December 2017.
As per Michael Novogratz, if we consider the data until May 20, 2022, major altcoin have plunged around 80% and according to him, the altcoins could drop even more.
Hence, Novogratz urges traders to not to consider seeking local bottoms during the present bear market cycle and says this strategy will not benefit in the short-term outlook.
Meanwhile when the TerraUSD (UST) collapsed, Novogratz, who was once a Terra (LUNA) proponent referred to Terra’s stablecoin as a big idea that failed.
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Source: https://coinpedia.org/altcoin/best-bottoms-are-around-the-corner-tarders-heres-what-you-should-look-for/