Cryptocurrency Analyst Believes We Need Another Drop Before Recovery Rally
Chris Burniske, the former crypto leader of Ark Invest, described his scenario, after which the cryptocurrency market will finally enter a reversal rally. At the same time the analyzer do not expect Things went just as badly as they did in 2008.
“Another big flow”
In his most recent post, Bernsky told his followers that the market needed another big influx that would cap off all the pessimism among market participants. According to various sentiment indicators, most cryptocurrency traders and investors are still in a state of fear despite the relative calm of the market.
Things probably won’t get as bad as ’08 doooooooooomers say, but we’ll likely need at least one significant influx of pricing in each pessimism, lows of desperation, and solid grounding to build growing optimism (ie, upside down) .
– Chris Burniske (@cburniske) September 6, 2022
With another drop, the cryptocurrency market is likely to reach the long-awaited bottom and enter into a prolonged consolidation. After a cooling off period, institutional investors may pay more attention to oversold assets, thus providing more purchasing power and driving the market value higher.
According to the institutional flows into the cryptocurrency market that we mentioned earlier, most investors avoid investing in digital assets and only put money into short Bitcoin ETFs and other investment vehicles.
What is happening to the market now?
On September 5, the DXY index, which represents the value of the US dollar against the FX segment, reached a 20-year high, undoubtedly affecting the digital asset market.
While the effects of a stronger US dollar may not be as devastating as one would expect, it is a significant risk factor that drives potential investors away from cryptocurrencies linked to higher-risk assets.
At press time, Bitcoin is trading at $19,969 and moving in a non-volatile consolidation range that has been in place since August 28.