Wall Street need not be squeamish about Bitcoin’s ups and downs: Pomp

💡 DMK Insight

Bitcoin’s potential for a 30% drawdown isn’t shocking to seasoned traders, but it could rattle Wall Street investors. Historically, Bitcoin has experienced significant volatility, making such drawdowns a part of its DNA. For day traders and swing traders, this means keeping a close eye on key support levels. If Bitcoin were to breach a critical support level, say around the $25,000 mark, we could see panic selling, especially from institutional investors who might not be accustomed to such swings. This could create a cascading effect, impacting correlated assets like Ethereum and even traditional markets that have started to dip their toes into crypto. But here’s the flip side: these drawdowns can also present buying opportunities for those with a longer-term perspective. If you’re looking to enter or add to positions, consider monitoring the RSI for oversold conditions or waiting for a bullish reversal pattern on the daily charts. The real story here is how Wall Street reacts—will they flee or will they see it as a chance to buy the dip? Keep an eye on the next few days; volatility is likely to spike, and that could create actionable setups.