Bitcoin made headlines these days, after the king coin managed to hit $20k and then more important levels.
At the moment of writing this article, BTC is trading in the green, and the coin is priced at $23,207.37.
Analysts are dropping optimistic predictions about the price of Bitcoin like there’s no tomorrow. Considering how things are linking like these days, no one could imagine disaster striking in the crypto space.
But now, a Bitcoin whale analyzes three potential scenarios that could bring crypto down.
Factors that could bring the market down
The Daily Hodl mentions the pseudonymous whale Joe007, who is known for placing large bets on the crypto exchange Bitfinex.
He said he expects many early investors to pull out once the price of BTC is “high enough.”
More than that, he also warned Bitcoin is not immune from a global market reversal.
He’s addressing a potential event similar to the one that happened early this year, back in March, which briefly caused BTC to plunge from about $9,100 to about $4,000.
“Macro market meltdown is one possibility, and ‘crypto’ won’t be any more immune than in March. Also, once BTC price is high enough, holders are going to cash out en masse, leading to a sudden balance shift that precipitates a parabolic curve blow-off. It’s all about timing,” he said.
… or maybe others will just dump their bags on you instead, who knows. There are lots of very heavy bags out there at these price levels, especially in shitcoin space.
— Joe007 signals·alerts·funds are scams, all of them (@J0E007) December 8, 2020
He also addressed potential sales from investors who are expected to one day receive BTC that was frozen in the collapse of the crypto exchange Mt. Gox.
“Bad news is usually ignored in the bull part of the cycle. Only a real shift in demand/supply balance matters. Mt. Gox ‘thing’ may have a real impact once these 160K BTC are actually released into the hands of long-suffering Gox clients. Which definitely won’t happen tomorrow.”
He believes that investors have to prove that they are willing to buy at current levels.