On Nov. 8, Bitcoin hit new lows after holding the position since June. Millions of investors are panicking. Catastrophic words are wasted, and further collapses are expected.
Crypto haters are revitalized by this further collapse and intensify their fire to destroy the much-hated Bitcoin.
Chinese authorities are rubbing their hands. They were right to have banned Bitcoin from Chinese people’s reserves.
Yet the situation is nowhere near as black as the haters and enemies of cryptocurrencies present it to us. The problem is only with Bitcoin, which no longer represents the soul of crypto investors.
Luna, Celsius and now FTX. A lot of things are blowing up.
Do you think something else will blow up this cycle?
If yes, who is the next candidate to blow up? 💥@DylanLeClair_
— Jan Wüstenfeld (@JanWues) November 9, 2022
Crypto haters are revitalized by this further collapse and intensify their fire to destroy the much-hated Bitcoin.
Bitcoin is Heading to Zero. Wonderful scam of new Century
— Raj Mysti (@ar39359356) November 8, 2022
Chinese authorities are rubbing their hands. They were right to have banned Bitcoin from Chinese people’s reserves.
🇨🇳 China state-run newspaper ‘Economic Daily’ says #Bitcoin is heading to zero.
— Watcher.Guru (@WatcherGuru) June 28, 2022
Yet the situation is nowhere near as black as the haters and enemies of cryptocurrencies present it to us. The problem is only with Bitcoin, which no longer represents the soul of crypto investors.
What will happen in the coming months?
Bitcoin, which broke the June lows, is likely to continue to fall until at least December. When you break the lows, you pay the consequences. Always!
So have cryptos gone bankrupt? Are they heading toward zero?
No, in fact, I claim in this article that the problem is only with Bitcoin. Cryptos are healthy and behave like the stock market.
In fact, unlike Bitcoin, both traditional stock market indices (Nasdaq, SP500, Dow Jones, Dax, Cac40…) and many other cryptocurrencies (Matic, BNB, Ethereum, ATOM, Doge, Monero, Litecoin…) have not broken lows.
If we look at TOTAL 1, which is the index of all cryptos (including Bitcoin), we can see that the lows have not been broken. This means that the rest of the cryptos are deeply bullish. Although Bitcoin, which has a dominance of 40 percent, has broken the lows the rest of the cryptos are holding. This is excellent news. It also means that the bulk of crypto enthusiasts are much more active on altcoins than on Bitcoin.
Bitcoin is left to large investors or new investors who have no idea what the crypto world is all about. These are also the most susceptible to downturns.
While the crypto enthusiast is holding on and not getting spooked by a few lows, new and big investors are ready to flee.
New investors do not know how the market works and are easily frightened, so they exit at a loss. So they get rid of bitcoin.
Big investors must have a spread manageable between assets and liabilities. So when liabilities go up too much, they are forced to liquidate some liabilities. This is why they are getting rid of Bitcoin.
From this, it can be concluded that right now, Bitcoin is the ball and chain of the crypto market. Obviously, the whole market is affected by the Fed’s decisions. But the economy is holding, and stocks and cryptos are holding too. The only one that does not seem to be holding up is Bitcoin itself.
It doesn’t seem to have the physique du role.
What will happen to the rest of the crypto market? There are 2 possible scenarios:
1) If Bitcoin continues to fall, it will probably take the rest of the market down with it. Its dominance is too important to be irrelevant.
2) However, Bitcoin could go down by a small amount. In that case, the rest of the market is safe. The important thing is that Total 1 does not break the lows.
Until mid-December, the situation will be tough for the whole market. We must wait until the new year to see a new bull run. Those who can hold on for another two months will be rewarded. Those who come out at a loss now will only be cannon fudders.
Conclusion
One should not be frightened by the market collapse. We are on the brink. Those who can pass this umpteenth shit test will be able to enter the new bull market of 2023 victorious. The others will run away from the market only to re-enter it toward the end of the bull run, where they will report more losses.
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