Bitcoin(BTC) To See More Decline With Choppy Sideways In Coming Days – Mike Novogratz
Mike Novogratz instinct says that Bitcoin might decline more
Mike Novogratz, the CEO of Galaxy Digital, stated that cryptocurrency values may still decline during a recent visit on CNBC. His “instinct” tells him that until the Federal Reserve changes its hawkish monetary strategy, it will be “choppy sideways” for some time.
He asserts that “lots and lots” of excessive leverage is to blame for the industry’s current severe correction. Centralized bitcoin businesses with a lot of power included Celsius, BlockFi, and Three Arrows Capital, according to Novogratz.
The three above-mentioned companies are currently among the worst hit by the ongoing market meltdown, which has brought the entire sector to its breaking point. However, the deleveraging process is still ongoing and “It feels that we’re 90% through that deleveraging,” he added.
Of course, the issue is that there isn’t an optimistic narrative for cryptocurrencies that may raise prices by drawing in more investors. Since the “inflation” hedge argument is no longer valid, Bitcoin needs to develop a new, compelling narrative to entice investors.
Due to its strong association with the tech-heavy Nasdaq 100, Novogratz correctly forecasted that Bitcoin will underperform in the first quarter of 2021 in late 2021. He stated that the biggest cryptocurrency was “extremely vulnerable” in January.
Bitcoin Price Action
Earlier today, Bitcoin soared above the $21,000 mark, but bulls are still wary of a potential pullback. After establishing a base above $19,500, the price of bitcoin began an upward movement. Price entered a positive zone after settling above the $20,000 resistance.
The $20,600 resistance area was broken by the bulls. Price activity at the moment suggests more gains above the $21,000 resistance level. $21,500 may be the next significant barrier. If not, bitcoin may adjust and reappear at $20,600. Near $20,000, the following big support is currently being built.
In light of recent market activity, it appears likely that the price of Bitcoin would quickly retrace or sell off in case it crosses the important $22,000 level, but if it doesn’t, traders may observe more resistance levels of $23,000 and $25,000.Source