Evidence shows that Bitcoin's decline is not over. Will it reach $10,000?

The crypto world has been in a bit of a slump for the last six months. But that's the way it is. When the price of bitcoin goes down and everyone starts to damn it. When the tide turns, everyone will love the king of cryptocurrencies again. Anyway, the current dark period also brings extremely negative scenarios that stand on a pretty reasonable argument and so we have to take them into account. Why do experts think that the cryptocurrency crash is coming and we will soon see bitcoin at $10k?

Experts fear another crypto crash is upon us

Although $BTCUSD-0.5% and other cryptocurrencies have been trending upwards in recent days, the cryptocurrency market is not out of the danger zone yet. The two largest cryptocurrencies - bitcoin and ethereum - are still nearly 50% below their November all-time highs. By the way, ethereum had its most important day this week, which my colleague here has described thoroughly:

D-Day, the biggest crypto upgrade in history. What if the Merge fails?

It's just that bitcoin has fallen below $20,000 several times in recent weeks, a price point that remains absolutely key. Experts debate whether it will see another decline similar to 2013 and 2017, when it fell 85% below its highs. Ethereum $ETHUSD-0.6%, the second-largest digital currency, has seen bigger gains than bitcoin in recent days. But it has mostly copied the king of cryptocurrencies in the bigger picture.

https://twitter.com/YahooFinance/status/1570072018996928514

That would be history. But we're mostly interested in what will be. For example, Edward Moyia - an analyst at OANDA - says that the crypto market will quite possibly see one more crash and bitcoin will quite possibly touch $10,000 again. Whether this will happen or if bitcoin has already bottomed out, he says we will find out in the next 2 weeks.

I guess one could argue that a new "crypto winter" is coming. Indeed, several things and events are not playing into the hands of digital currencies right now.

The collapse of the market in general, layoffs at crypto firms, and geopolitical issues. All of this, according to some experts, means that the price of cryptocurrencies will remain low for a long time to come. On the other hand - does it matter to anyone? 🤔

Worse, other experts besides Moya agree on the decline. They point to the past bear market in cryptocurrencies - which has seen 85% of corrections from all-time highs - and fresh concerns that the macroeconomic environment could worsen in the future. Which is quite possible.

Understandably so, there are more and more apocalyptic reports of a bitcoin crash at the moment:

https://www.youtube.com/watch?v=L_Ad1te76P8

Plus as I wrote - cryptocurrency companies are laying off employees, freezing withdrawals and trying to mitigate losses, which raises questions about the health of the industry. Of course a huge blow to solar for crypto was the fall of the Terra and Celsius network.

Sophisticated investors are likely already experiencing a multiple period bull/bear market. And they also know that in every bearmarket there is more and more negative news, fears and predictions, which in turn turn turn into phantasmagorical positive outlooks in a bullmarket.

We will have to wait for the bull market and so it can be a bit mentally challenging for newcomers to "weather" this particular dark period filled with pessimism and negative thoughts. So I'll leave you with a few classic tips to help you get through the dark times.

1. Invest only what you have to lose

To invest in cryptocurrencies, you should have a high risk tolerance and should only invest the amount you are willing to lose. This is doubly true these days. We may well need the money for more important and urgent things. So it's not wise to be 100% in a crypto that may fall again - and as we know, selling in a downturn is pointless. And then a point that is very specific to each investor, though - the size of the crypto portion in the portfolio. Personally, I stick to 10% of my portfolio.

2. Diversification

This is actually related to the last part of the previous advice - diversify. Crypto is very risky and so it is wise to be exposed in safer things as well.

3. Prioritize

And to tie in nicely, the third point will be related to the previous ones. Before investing in cryptocurrencies, make sure you are still in finance. But I hope that every Bulios reader has perfect financial literacy and I don't have to explain to them that "you don't go to the pub without money". A solid budget and a safety cushion can come in handy especially at this time. At the very least, it will help alleviate any stress you may have more than enough of right now by investing in cryptocurrencies. So I would personally recommend not stressing and not stressing, which is what I personally do. But I know that's easier said than done :)

4. HODL

Let's just wait out this next bullrun. I've been in this situation 3 times now and so far I've always waited 😎

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Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and a few other analyses. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.

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