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Could BTC Drop Up To 40% in September Before A Bottom is Found?

Published 11/09/2023, 11:53
Updated 11/09/2023, 12:15
© Reuters.  Could BTC Drop Up To 40% in September Before A Bottom is Found?
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  • According to John E. Deaton, no one knows what will happen next in the crypto market.
  • An FTX sell-off could lead to the crypto market falling by another significant margin.
  • FTX sell-off could push the market down by another 30 to 40% in September.

According to John E. Deaton, a prominent cyptocurrency lawyer, no one knows what will happen next in the crypto market until it happens. In a recent post, Deaton highlighted the uncertain short term outlook for the crypto market, particularly owing to the sale of the FTX estate’s crypto assets expected this month.

Deaton probed the scenarios confronting the crypto market, asking if the bear market has found a bottom yet or if the proposed FTX sell-off could lead to the crypto market falling by another significant margin. Deaton questioned if the FTX selling could push the market down by another 30 to 40% in September before finding a bottom.

While offering his opinion, Deaton shared a meme from cryptor investor Scott Melker, where he noted that we are in the “wait for bear market bottoms to buy” phase in the crypto market. Incidentally, Melker’s graphic representation shows an unending cycle laced with uncertainties. This is likely a reference to the impossibility of predicting the actual nature of the current crypto market.

Lark Davis, a renowned entrepreneur and Bitcoin investor, thinks the FTX sell-off will not be significant to developments in the crypto market. He acknowledged the attention the proposed event has attracted but believes the expected $3 billion dump into the crypto market is not a big deal.

According to Davis, the crypto market is in a weird situation. He noted that not much is happening with cryptocurrencies despite being just eight months away from the next Bitcoin halving. The famous investor spotted a developing Death Cross on the Bitcoin chart that could push the market lower.

Davis explained that the Death Cross, just like the Golden Cross, has a decent hit rate. Like every other indicator in technical analysis, it is not 100% predictive but is worthy of consideration in judging where the market could head.

The post Could BTC Drop Up To 40% in September Before A Bottom is Found? appeared first on Coin Edition.

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