Check out the daily BTC chart. The Orange-colored area was the recent moving channel, which has now experienced a miserable failure. The next levels of support (blue channel) seem to start around the $4000 area. I do not believe the upper area of support will hold. I think the bottom area of support looks stronger, around the $3000 area. So, I wouldn't be "buying the dip" anywhere over $3,400 or thereabouts. However, I would not be surprised to see BTC fall to $2,600 over the next few months.
In the next market downturn, I think the crypto markets may initially be wiped out right along with the larger stock and bond markets. The dollar is no longer going to function as a "safe haven" for peoples' wealth. I think much of the "safe haven" money will flee into bonds, which will then get wiped out. (Mostly, this is where institutional investors will place pensions, ETFs, and "main streets' money," where the average joe will again get hosed down.) The big money or "smart" money which has already moved into the safe haven of precious metals will get a giant move upwards (banks win, again).
Perhaps there could be a knee-jerk move into the cryptos - but I think that will happen more after a major crash happens and cryptos are looked at as a "fix" or a replacement for the U.S. Dollar. The USD is a debt-backed instrument, but cryptos are not debt-backed, they are blockchain-backed; proof-of-stake and proof-of-work, or some combination thereof. When the larger populace realizes cryptos are backed by something which is much better than debt, and the dollar has failed, mass adoption will probably then occur. But, that's not until later. Right now, stick with THE REAL SHINY: silver and gold. Or, be a super early adopter of the cryptos and make sure you buy in at rock-bottom prices - if you still have access to some extra cash. But, I still don't think the bottom is in for cryptos, just yet.
DISCLAIMER: I am not a financial advisor. Anything in the above content is meant for educational/entertainment purposes only. Do not make trades based on this article. I am not responsible for any financial gains or losses you make in regards to this information.
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