Bitcoin (BTC) could test $ 10,000, but heavy losses will not be uncommon, says the asset manager on the 90th anniversary of the Wall Street meltdown.
In a tweet on September 4, Raul Pal said that the drop in bitcoin prices over the past 24 hours was not unusual.
Pal is considering buying Bitcoins
He wrote: “For bulls after the half rounds, Bitcoin can often track 25% (up to 40% + in 2017) and ignore short-term traders (or give swing traders a chance on the short side).
“Every single one of them was a buying opportunity. A future DCA opportunity?”
PAL denotes the average investment in dollars, which involves purchasing a certain amount of bitcoins on a regular basis to build a portfolio gradually.
As Cointelegraph points out, this practice showed proven returns for BTC, and Square Payments Network revealed it this year as a consumer benefit.
Compared to Thursday’s losses even including the recent reduction in internal gains, Bitcoin performed worse in context than what the price indices indicate.
However, according to the Crypto Fear & Greed Index, the damaging effect of the losses was a sharp shift in investor sentiment. The index, which was strong in the greedy region just a few days ago, fell by more than 30 points from 100 to 40 on Friday, meaning fear, for the first time since July.
Markets crashed in memory of 1929
As analysts continue to monitor a possible drop in BTC / USD to bridge the future gap of $ 9,700, historical signals are appearing chilling out in the overall markets.
As writer Holger Schitz noted Friday 4 September, it marks the 91st anniversary of the day the markets began their rapid decline across the wall. St. Crash.
“Just to set a record: After the resounding success of the stock market in the 1920s, the crash began on September 4, 1929!” tweet.
As in 2020, the event came after months of stockpiling, and shortly before that, economist Irving Fischer said stocks had “reached what appears to be consistently high”.
Zshaepitz’s words come as others warn about the authenticity of the gold, silver and dollar indicators. In the latter case, resistance is found after several days of gains coinciding with the bitcoin selling price, according to Cointelegraph Markets Filpfelbe analyst.
Be careful with this dump, warn subscribers of the Telegram trading channel.
“Other markets are in full swing. If they survive, we might be fine. If it was a huge dump, it wouldn’t be used in abundance in the long term.”
At time of publication, Bitcoin was trading at around $ 10.400 after recovering slightly from a low of $ 1,090, with daily losses continuing at around 9%.