Bitcoin Drops to $23k, What is Rock Bottom?

Unfortunately for Bitcoin investors and enthusiasts, we now know the direction of Bitcoin’s breakout as it dropped to $23,023 on Monday from Saturday’s price of just over $29,000, following an almost month-long consolidation period. Over the last 24 hours, Bitcoin is down 17.74% with some experts predicting that there is more to come. 

Here is a live look at the king of crypto’s last month in the market. 

CNBC’s Jim Cramer, called Bitcoin’s crash, Crypto Monday and predicts that Monday’s crash is day one of a very bad run for the number one cryptocurrency and the crypto market as a whole. 

Cramer also noted last week that when he was in Silicon Valley speaking to tech executives, many believed Bitcoin was a fraud and that promoters have taken a lot of money from unsuspecting investors. The Mad Money host mentioned that he was able to get out of Ethereum as it also plummeted about 20% on Monday, saying that he was able to break even on the money he invested into the second-largest cryptocurrency. 

He tweeted on Monday that what the crypto market needs right now is for crypto lovers to buy, hold and thus stabilize the market. 

He also mentioned via Twitter that people should watch Microstrategy’s strategy for how they handle Bitcoin’s decreasing price. 

Speaking of Microstrategy, their CEO, Michael Sayor remains optimistic on Bitcoin despite its recent crash, tweeting, “In #Bitcoin we trust.” 

This comes as his company now sits on unrealised losses of more than $1 billion. The tech firm has 129,918 Bitcoin valued at just under $3 billion, which is $1 billion less than its almost $4 billion investment. 

This comes a little more than a month after Saylor dismissed talks of receiving a margin call, saying that they would not receive one unless Bitcoin dropped to $3,562. Of course, he could just put up more Bitcoin or other assets, instead of selling his Bitcoin if the cryptocurrency drops to that number. 

What is Rock Bottom? 

Josh Rager, co-founder of BlockRoots, a platform to learn about cryptocurrency and blockchain, tweeted a short video on Sunday where he predicted rock bottom for Bitcoin to be around the $22,300 number. 

"People are looking to buy there, it's going to bounce more than likely at that area," Rager said. 

He mentioned this number as it correlates with the 200 SMA (simple moving average). He also mentioned that previously Bitcoin has bottomed out at 84% of the previous all-time high. In this case the previous all-time high is $69,000. So the lowest, “bottom” for this current bear market would be around $11,000. 

However, Rager believes that is too low because “you’re basically looking at a full retrace of the entire bull market and we have never seen that.” Instead, Rager predicts that if $22,300 isn’t rock bottom, it could be anywhere from $14,000 to $20,000. 

In addition, Rekt Capital talked about the 200 MA, in a series of tweets on Monday, in which it suggested that rock bottom could be anywhere from $15,500 to $19,000 based on wicks at -14% to -28% below the 200-week MA. 

Author: Tyler Irvin

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