Some of the most well-known crypto investors believe that the bottom of the cryptocurrency market is fast approaching, although they still warn of catastrophic consequences if prices fall below established support levels.

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Billionaire Mike Novogratz, founder, chairman and chief executive officer of digital asset trading bank Galaxy Digital Holdings, said at the Morgan Stanley conference on June 13 that cryptocurrencies could be close to the bottom, with Ethereum (ETH) likely to hold at 1000 dollars, while bitcoin (BTC) is about $20,000 to $21,000.

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According to him, the bottom for the cryptocurrency will be reached faster than for US stocks, which could fall another 15-20%.

“Ethereum should hold about $1,000, and now it’s $1,200. Bitcoin is worth around $20,000, $21,000 and $23,000, so you’re much closer to the cryptocurrency bottom than where I think stocks will drop another 15% to 20%.”

Hayes warns of sell-off risk

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Arthur Hayes, co-founder and former head of BitMEX, took a similar view, acknowledging that Twitter On June 13, on-chain data for Wrapped Bitcoin (wBTC) and Ethereum showed that “liquidations were mostly happening.”

However, Hayes warned that if the support levels for BTC and ETH break at $20,000 and $1,000 respectively, we could expect “massive selling pressure in the spot markets.”

Pal, Scaramucci is loading

Macro investor Raul Pal has taken the recent market downturn as an opportunity to increase his exposure to crypto. On June 14, Pal told his 956,000 Twitter followers that “we are in a buy zone” for bitcoin (BTC), adding that he is preparing to “significantly” increase his holdings in the cryptocurrency, “probably starting next week and through July.”

The former Goldman Sachs chief executive explained that bitcoin’s approaching bottom could also be signaled by the weekly Relative Strength Index (RSI), which stands at 31, approaching its lowest reading of 28.

RSI is a metric used by investors to measure the speed and magnitude of price changes that may indicate an overbought or oversold condition. According to Investopedia, an RSI reading of 30 or below indicates an oversold and undervalued condition.

Pal said his structure often assumes 60% turnover in the long run, adding:

“In fact, the best way to optimize returns is to significantly increase profits when the market tests a key trend.”

Anthony Scaramucci, founder of Skybridge Capital said CNBC’s June 13 Squawk Box that investors should “remain disciplined” amid the crypto downturn, noting that his fund continues to add bitcoin and ethereum to its portfolio.

“With the extra cash coming into our fund, we have bought more bitcoin and ethereum. […] So yes, in truth, people will look back on this fiasco and say that I wish I had fresh money to buy it.”

‘Too Early’ To Say Bitcoin Price Recovered Key Bear Market Support – Analysis

Novogratz was less fanatical about investing right now, taking a more conservative approach and telling attendees that it might not be the time to “invest a lot of capital” as the economy could continue to fall.

“Until I see the Fed flinch, until I really think, okay, the economy is so bad and the Fed is going to have to stop hiking and even consider cutting, I don’t think it’s time to really invest a lot of capital. “.

Other indicators that may shed some light on whether the cryptocurrency is nearing its market bottom is the Fear and Greed Index, which is currently at 8 under the “extreme fear” that was last seen on May 17, around the time of Terra. (LUNA) collapse.

Bitcoin is currently worth $22,061 and ETH is $1,215 at the time of writing.