Bitcoin may be trading at a generational low amid a once-in-a-lifetime correction, according to analyst
Popular crypto analyst Cred says Bitcoin’s (BTC) price may have bottomed around $20,000 in a market correction driven by unprecedented factors.
In a new Youtube market analysis, Cred says that BTC’s trading price may not drop lower, but if it does, he says that in the long term it won’t matter.
“I think $20,000 is a good price. Is it necessarily the best price? No. Does it matter if it’s the best price or not? Absolutely not. Like if you bought Bitcoin in 2018 for $6,000 and it crashed to $3,000, you probably felt like a complete idiot for buying at six o’clock and now it’s three o’clock. However, you probably felt pretty smart if you held and watched it go to $69,000.
I think a similar analogy can be extended to about $20,000. It’s a coin toss whether or not it’s a generational bottom and where the market actually ends up. But I think over a long enough time horizon if you’re right about crypto or if you care about crypto, you probably won’t regret buying $20,000. It just depends on your volatility and drawdown tolerance in the meantime.”
Cred supports its “generational bottom” price target by pointing to the factors that have led to the ongoing market correction. He says the markets are reacting to a confluence of factors that are likely to be experienced only once in a lifetime, creating an opportunity for investors.
“It’s worth keeping in mind the bigger macro picture than cyclically or long-term multi-cycle crypto, these are by no means terrible prices. And also in the macro context, realistically, at the moment I know it sucks and the Fed is raising rates and inflation is high and strong dollar and this, that and the other But if we zoom out, on our investment career and trading lifetime, if we’re honest about it, how many tightening cycles are we likely to get?
Like how many times will these incredibly unique conditions repeat where we get completely shut down and new economy from COVID, super inflationary crazy fiscal and monetary policy post-COVID? And then the crazy inflation and tight correction that followed? I mean that the sequence of events itself is so unfathomable that realistically we may only get one in our lifetime.
So even if we take the credit cycle and liquidity cycles in general, we’re talking about a very small handful of these types of corrections that take place in our lifetime. The crypto corrections, yes, can and will happen more often. But in terms of this whole big macro liquidity curve that is correlated to trading, I think the number of times we get to experience this in our lifetime is very, very low. And therefore it also provides an opportunity, especially if you can withstand a bit of a downturn.”
Cred says he’s looking for certain signs to determine when a bull run could take shape for BTC.
“I want the previous cycle’s all-time high of $19,900 to $20,000 to stop acting as resistance and act as support. I think that will create a day-trading bias toward the $21,000 midpoint. And then maybe as high as, I know that sounds depressing, but maybe as high as $23,000 to $24,000 if that’s the high end.”
Bitcoin is trading at $20,216 at the time of writing, a nearly 4% positive change on the day.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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