Is $10k Bitcoin (BTC) a buying opportunity?

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Last Updated on 5 September 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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As Bitcoin hovers near the $10,000 threshold after it broke through $12,000 earlier in the week and Ethereum neared $350 rather than break through the $500 level, some in the crypto scene are panicked as others wonder whether a buying opportunity is presenting itself.

There is ample discussion in the markets at the moment whether the brutal stock market selloff which correlated with the crypto markets selloff started for similar reasons. As to the stock market, the all-time high of the Nasdaq and the clear reversal of the dollar losses when it traded near 1,20 to the euro to a value now of only 1,18, were of course both a trigger for the stark reversal of fortune.

Furthermore, worldwide media had been signaling an overheating market for a few days. Lastly, doom mongers pointed to the fact that the 1929 stock market crash also started in the first week of September, but I believe we’re not comparable to that situation as of yet.

Advertentie.

Crypto crash

As to the crypto market, it was becoming ever clearer that the DeFi growth of the last few weeks (and even months) had to stop at a certain point and attract profit taking. One has to however wonder whether this is the start of a longer correction of if there is a buying opportunity in the works.

For anyone having traded Bitcoin for more than just a year or so, a 10% fall in a day is of course nothing new, for a newbie like Dave Portnoy, this might be a bit too much. then again, The Barstool Sports Presidente might be eager to enter again at this level. His beloved Chainlink is looking a whole lot cheaper now of course.

As a reminder, the Bitcoin price traded near $8,000 in January, fell to $3,600 during the March corona crash and recovered to reach a level over $12,000 by the beginning of September. A retracement towards $10,000 therefore seems healthy in a way.

Buy now?

As famed investor Raoul Pal remarked:

In the post-Halving bull cycles, bitcoin can often correct 25% (even 40% + in 2017), throwing off the short-term traders (or giving swing traders a shot at the short side).

Question that remains is whether you should wait for it to fall to the $8,800 level (where many Whales are indicating they will get back in) or whether $10,000 represents the real buying opportunity.

Except your answer to become clear over the weekend.