Say What?! Bitcoin at $30K?! Probably NOT!
I wrote a story on Feb 7th about the possibility of Bitcoin dipping to $15K (Will Bitcoin crash to 15K?!! Crypto Risk Index weighs in!). Around that date Bitcoin was hovering around $22.8K but we were witnessing an interesting behavior in the Crypto Risk Index for BTC. If you don’t know what Crypto Risk Index is, you can read my previous stories on this cool index that incorporates multiple factors into one index that can help you with your crypto investment. It is published and updates hourly by https://cryptomarketbuzz.com/.
- Introducing Crypto Risk Index: the ultimate technical index for your cryptocurrency trading needs
- How I avoided the Nov 2022 crypto crash using the Crypto Risk Index
- Did Crypto Risk Index predict the recent market jump?
- Will Bitcoin crash to 15K?!! Crypto Risk Index weighs in!
So the price and the risk index both behaved in the same trend that I predicted, but the price didn’t crash to $15K, YET! The price dipped to $20.5K while the risk index dropped to 15, which is in the Low range. In the past, when the risk index reached the Low range, the price jumped slightly but May, June, or Sept 2022, which was then followed by another price drop (as shown in the chart below). It should be noted, since the risk index is in the Medium range, there is possibility for a price increase, before the drop.
No one can predict the future price of BTC or other crypto, since they are affected by many external and political factors, and we will have to wait and see how the price actions unfold over the next few days. But the price/risk index trends can be useful tools for informing investment decisions.
Final thoughts …
Crypto investing can be highly lucrative, but it also comes with a number of risks. Without a proper risk management strategy in place, investors can suffer significant losses when the markets go against them. As always, my advice is to manage your risks, understand the crypto markets, read the news, understand the assets you are investing in, and have proper exit or HODL strategy before entering any investments.
Keep in mind, the information provided on this blog is for informational purposes only, and does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the blog’s content as such. You need to do your own research and understand the underlying volatility and legal and political aspects of cryptocurrency markets. Also, you need to consult your legal, financial and tax advisors before investing in cryptocurrencies. There are risks in cryptocurrency investments. Do your own research and invest wisely.
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