If bitcoin breaks below the $15,000 support level, the bears think it could go all the way to $6,000. According to financial expert Dominic Basulto, such a steep drop from current levels would likely result in a market crash that has been a feature of past Bitcoin booms and falls. However, the expert also says that continuing to buy Bitcoin while it goes down could be the type of outlier that creates the next Bitcoin millionaires. We have prepared the expert’s reviews and predictions for our readers.
Worst-case scenario for Bitcoin
Bitcoin bears are in the square. While BTC is trading around $16,900, fears of further FTX contamination, recession, inflation and Chinese geopolitical risk are likely to push it below $15,000. Naturally, even the most stubborn Bitcoin investors are worried right now. Currently, $16,900 represents a significant pullback from the previous $20,000 support level that Bitcoin maintained over the summer. Far too good. As long as you buy now, you’re still buying dips. But now comes the big moment of truth: If it drops below $15,000, would you buy it?
Until the FTX market contagion, $15,500 was supposed to be the worst-case scenario for BTC. But then FTX came along, and now there’s a new worst-case scenario: $6,000. This would represent a massive 65% drop from current levels. Also, more Bitcoin bears will inevitably appear. At the same time, it will lead to an eventual mass capitulation and investors rushing to exits or complete market capitulation.
Previous Bitcoin bear markets required this panic before BTC finally hit the bottom. In short, there must be such an intense pain point in the crypto market that even the most resolute Bitcoin investor decides to wave the white flag. Most likely, the market needs one final push to achieve full capitulation. However, it is possible to see another long-term rally as Bitcoin hits the last low.
Buying the bottom in Bitcoin (BTC)
The glimmer of hope in all this is that $6,000 of Bitcoin is still twice the 2018 bear market bottom. If you buy at $6,000, you’re setting yourself up for some potentially exciting price hikes in the coming months.
For example, consider the price projections of California-based crypto hedge fund Pantera Capital. It has set a price target of $149,000 for Bitcoin based on its expected performance at the next halving event scheduled for 2024. According to this model, Bitcoin will bottom out by the end of 2022. This will be followed by a gradual recovery in 2023, before a massive gains momentum into 2024. Pantera Capital predicts that Bitcoin will reach $36,000 by 2024. He also predicts that it will skyrocket to $149,000 afterward.
Presumably, this $149,000 price prediction is at the top of the range most investors are expecting. But even if Bitcoin only follows its path to $20,000, these bottom-up investors will expect incredible gains. This may not be possible. But it’s definitely within the possibilities. Bitcoin was still trading around $20,000 in mid-June after the initial market downturn triggered by Luna.
bear market millionaires
There is a popular saying in crypto circles: “Bear markets are where millionaires are made.” That’s when it’s possible for normal, casual investors to collect valuable crypto assets at very low prices. Buying Bitcoin at $6,000 and then patiently waiting for its price to rise to $149,000 is the kind of investment move that will make you a millionaire.
Yes, this is a very risky investment strategy, especially given the historical volatility of crypto. And yes, you will have to buy and endure some real pain for it to work. The eventual market capitulation for Bitcoin will be dizzying and stomach-churning. But when that day comes (when every one of your neighbors says you’re crazy for investing in Bitcoin), then the market will hit an absolute bottom.
Total capitulation in the crypto market sounds awful, except it isn’t. It’s just a feature of the system. It helps to remove all the selling pressure in the market. All risk-averse investors are replaced by risk-tolerant and risk-seeking investors. Also, the market has nowhere else to go but to go up. That’s why I’m looking forward to long-term bullishness in Bitcoin. I’m taking the dip and I’m getting a double bottom especially when it drops below $15,000.
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