Bitcoin

Bitcoin Drops Below 36K for First Time Since February

Financial markets dropping

A rough week for crypto

The crypto market has had quite a red week. When the fed announced the first half percentage point rate hike since 2000 on Wednesday, the stock market and crypto initially rallied more than 3% before dropping steeply. This move by the fed is an attempt to reduce inflation. This morning, Bitcoin dropped below $36,000 for the first time since February, while Ethereum dropped to around $2,700. With a heavy IMF influence, Argentina recently announced that they will ban new crypto activities in banks.

Altcoins besides Ethereum took a much worse beating, though, with many such as Hedera Hashgraph setting new 52-week lows. If Bitcoin can break past a resistance level at $38,000, there could be a rally to 40k or more. However, if Bitcoin goes below a support at $35,000, there could be a further drop to $30,000.

Navigating the sea of red

Investors buy more Bitcoin at 69k than 35k
From Reddit

This meme illustrates an important point about investing in Bitcoin. It basically implies that people have FOMO and buy more Bitcoin at a near all-time high, than when Bitcoin is at a 52-week low due to fear.  Now is arguably a great buying opportunity for most investors, since timing a Bitcoin low is nearly impossible.

Another important factor to consider is that the crypto "fear and greed" index is registered "extreme fear" at $36,000, when that same reading a few years ago was when Bitcoin hovered around 20k. While being in "extreme fear" territory is never a good situation, this data suggests that Bitcoin's new bottom is around 30-35k. Given that a black swan event can happen in the world at any time, there is still some risk that Bitcoin could drop below $30,000, as mentioned previously.

In these times of war and sky-high inflation, the best strategy is taking profit/losses when you need too, but HODLing your safest assets while dollar cost averaging.

Cryptohopper