Galaxy Capital’s Mike Novogratz Warns that Finding Crypto Bottoms is Dangerous, Altcoins Could Dump by Another 70%

Sum­ma­ry:

• Mike Novo­gratz has warned the cryp­to com­mu­ni­ty against pick­ing price bot­toms as it is dangerous.
• He also point­ed out that most alt­coins are down by over 80% from their highs, and the loss­es in the 2018 bear mar­ket were over 95%.
• Con­se­quent­ly, alt­coins will like­ly drop by anoth­er 70% from their cur­rent levels.
• Robert Kiyosa­ki has also high­light­ed that mar­ket crash­es could be an oppor­tune time ‘for smart investors to become very rich winners.’

The CEO of Galaxy Dig­i­tal, Mike Novo­gratz, has warned the cryp­to com­mu­ni­ty against pick­ing price bot­toms dur­ing the ongo­ing bear mar­ket as it is dan­ger­ous. Accord­ing to Mr. Novo­gratz, any­one attempt­ing to time the cryp­to mar­ket bot­tom should do so gradually.

In addi­tion, Mr. Novo­gratz high­light­ed that many alt­coins are down by 80% from their recent highs. But more loss­es could soon fol­low, giv­en that the 2018 bear mar­ket result­ed in the same alt­coins retrac­ing by 95%. He, there­fore, fore­cast­ed that alt­coins could quick­ly fall by anoth­er 70% from their cur­rent lev­els. He said:

Alts are down over 80 per­cent from the highs.

In [2018] it was over 95 per­cent. That is down anoth­er 70 percent.

My point is pick­ing bot­toms is dan­ger­ous and if you do scale in slowly.

Bear Markets Turn Smart Investors into Winners – Rich Dad Poor Dad Author

In anoth­er Tweet, the author of Rich Dad Poor Dad, Robert Kiyosa­ki, high­light­ed that bull mar­kets make stu­pid investors look smart. How­ev­er, bear mar­kets turn the same stu­pid investors into losers and smart investors into win­ners. He also point­ed out that mar­ket crash­es could pro­vide oppor­tu­ni­ties for smart investors to become very rich winners.

Mr. Kiyosa­ki shared his insights on the mech­a­nisms of bull and bear mar­kets through the fol­low­ing tweet.

RICH DAD said “Bull Mar­kets make stu­pid investors look smart. Bear Mar­kets turn the stu­pid investors into losers and smart investors into winners.”Markets are crash­ing. Time for smart investors to become very rich win­ners. Take care

— the­re­alkiyosa­ki (@theRealKiyosaki) May 21, 2022

Bitcoin Continues to Consolidate Between $30k and $28k

Con­cern­ing price action, Bit­coin con­tin­ues to con­sol­i­date between the $30k resis­tance lev­el and the $28k sup­port lev­el. The King of Cryp­to con­tin­ues to trade in bear ter­ri­to­ry below the 50-day (white), 100-day (yel­low), and 200-day (green) mov­ing aver­ages, as seen in the fol­low­ing BTC/USDT chart.

How­ev­er, the dai­ly MFI, MACD, and RSI are in over­sold ter­ri­to­ry and could sig­nal a con­tin­u­a­tion of con­sol­i­da­tion or an attempt at reclaim­ing $30k as support.

But cau­tion is advised long­ing Bit­coin giv­en the bear­ish mood sur­round­ing both the tra­di­tion­al and cryp­to mar­kets due to var­i­ous glob­al cen­tral banks, includ­ing the US Fed, increas­ing inter­est rates to tame inflation.

Con­se­quent­ly, the con­sol­i­da­tion being observed by Bit­coin could be the gen­e­sis of anoth­er drop to low­er lev­els, such as the recent low of $26,700 or even low­er to Arthur Hayes’ fore­cast of $20k.