BTC is down by a precipitous 17% over the past week as the cryptocurrency hits a fresh 2-year low beneath $16,000.
The cryptocurrency lost crucial ground at $18,600 last week – a level that provided strong support since June 2022 – amongst the diabolic breakdown and withdrawal run on the major FTX exchange.
The commotion injected an overwhelming amount of fear into the market, causing the entire industry to sell off and bring the total market cap beneath $760 billion for the first time since December 2020.
During extremely bearish periods, wise investors typically look for other areas to invest their cash. One particular segment of the market that investors choose to park funds in is in presales as they consider them a safer option.
With Bitcoin heading lower, many ask if the price will be $10,000. So we decided to look at three possible scenarios and outline why we think investing in presales is a much safer option.
Bitcoin Doomsday Scenarios
The fallout from the potential FTX liquidity crisis and insolvency has taken its toll on the entire cryptocurrency industry, causing BTC to break beneath the 2022 support at $18,600 and reached as low as $15,600.
Bitcoin has been in a consistent downtrend since late 2021 after hitting an all-time high of $69,000 in November 2021. Since then, BTC has continued to tumble each quarter as it set new lows.
Over the past few months, the volatility in the cryptocurrency market had died down, which caused many analysts to believe that the price would hold onto the $18,000 level. The support at $18,000 was provided by a 200-weekly moving average that had never been broken in Bitcoin’s long history.
However, as we witnessed this week, BTC could not hold $18,000 as it tumbled as low as $15,600 this week – setting a fresh two-year low not seen since November 2020.
With Bitcoin breaking crucial support, many traders question whether it will head toward $10,000 next – or even potentially beneath it.
We must remember that, even without the FTX liquidity crisis, global macroeconomic conditions are in the poorest states they have been in for almost two decades. Inflation is rampant, the Federal Reserve is hiking interest rates, and there is still an ongoing war on European soil. With all of this in mind, it would be surprising to see Bitcoin not hitting $10,000 next.
Nevertheless, the following are three scenarios where Bitcoin could head next.
Scenario 1: BTC holds current support and rebounds
The first scenario is hopium.
It would require Bitcoin to find some support between $16,000 and $14,000, which could help the market rebound and head back above $20,000.
This scenario is improbable when we consider the global economic factors previously mentioned. Moreover, it would require the US Federal Reserve to completely pivot on its current position of raising interest rates within the next few meetings – which is highly unlikely to happen.
Furthermore, it requires Bitcoin to find support between $16,000 and $14,000 – a range without any present support. The next primary level of support lies at $13,900, which is the June 2019 high.
If you want to cling to hope, there is a potential scenario where BTC hits June 2019 high and rebounds.
Scenario 2: BTC Continues to crash to $10,000
Scenario 2 is one of the most likely scenarios – BTC continues to crash until hitting $10,000.
The reason that $10,000 can be considered strong support is that it is a huge psychological level that many traders will present buy orders in the hopes of snatching up cheap BTC.
Senior Macro Strategist at Bloomberg Intelligence – Mike McGlone – believes this scenario is highly likely;
Once hitting $10,000, Bitcoin has the potential to rebound and start the slow grind back up toward $20,000 again.
Scenario 3: BTC Breaks beneath $10,000 and reaches as low as $4,000
Scenario 3 is the doomsday potential – and is quite likely considering global economic factors. If inflation continues to climb and the US Fed continues to hike interest rates, Bitcoin might have the potential to ignore support at $10,000 and continue to crash into the support at $4,000 – last seen in March 2020.
The last time BTC was at $4,000 was during the onset of the COVID-19 pandemic. Then, the uncertainty about how the economy would handle the global shutdowns caused risky assets such as BTC to crash.
If support at $10,000 fails to hold, most analysts would have $4,000 marked as the next crucial support level.
Why You Should Consider Presales as a Safer Investment
Wise investors believe that one of the safest ways to invest cash during a bearish market is through presales.
Presales typically present the lowest prices to invest in a project before it’s fully launched.
The exciting thing about presales is that bear markets don’t tend to affect them as much as the overall industry. Of course, fewer people will always invest in presales during the bear market, but it doesn’t mean they don’t raise capital. In fact, some of the largest presales in history were raised during bear market periods.
Another reason that presales are considered to be safer investments is because of the incremental price increases. Typically, presales occur in stages, which increase in price when the allocation of tokens is sold in each stage. As a result, those that invest in the earlier stages are already in profit by the time the presale is complete.
Furthermore, another great bonus about presales is that they take time to complete – meaning it gives plenty of time for the market to recover before they launch.
As with any investment, you will have to do your research to ensure you’re buying into something that suits your financial situation.
That said, three presales are currently underway worth parking some cash in. These presales stick out amongst the crowd as they have solid concepts, great teams, and long-term goals to keep the project interesting.
Dash 2 Trade – Helping Traders Become Elite
Dash 2 Trade is a world-class crypto analytics and intelligence platform designed to help traders become more elite and profitable. The dashboard provides actionable crypto trading signals, predictions, and social analysis to help traders make informed decisions.
Anybody can make money in the bull market, but Dash 2 Trade will help traders make a profit during bear market cycles.
Projects like Dash 2 Trade are beneficial to retail traders as it helps them to make more intelligent trading decisions based on market dynamics – especially during bear markets.
The platform will provide in-depth market insights to help traders create market-beating strategies. It will also allow traders to develop and test new systems and help them keep track of the latest news and essential on-chain data.
The presale for the project is currently underway, and it’s already managed to raise well over $5 million in under a fortnight of going live.
Investors quickly rush to the D2T presale because of the team’s successful track record, backed by quant developers and prominent venture capitalist investors. The same squad creating Dash 2 Trade also birthed Learn 2 Trade, a top-tier forex education and signals platform that amassed over 70,000 users.
The same team that created Learn 2 Trade has partnered with profitable crypto traders, quants, and AI developers to deliver a crypto trading dashboard and ecosystem.
IMPT – Helping the World Reduce Carbon Footprints
Another presale gaining the attention of environmentally-conscious crypto investors is IMPT – a carbon credit ecosystem designed to help individuals, businesses, and crypto projects reduce their carbon footprints.
The IMPT ecosystem was designed to make it straightforward for people who want to securely offset their carbon footprint and make a positive contribution to the environment.
Carbon credits are permits that represent 1 ton of carbon dioxide being removed from the atmosphere. Unfortunately, today’s carbon credit market is convoluted, with restricted pricing data and prevalent scams. As a result, individuals and businesses are often hesitant to enter the market as they aren’t sure they are paying fair prices or receiving genuine carbon credits.
This is what IMPT is seeking to change.
The carbon credits on IMPT are hosted as NFTs on the blockchain, making the economy completely transparent. The IMPT Carbon Platform allows users to buy, sell, and retire carbon credits. When a carbon credit is retired, the NFT is sent to a burn address – removing it from circulation.
In addition to the carbon credit market, IMPT has also designed a Shopping Platform that allows users to earn carbon credits when doing regular shopping. They are affiliated with top global brands, including The North Face, Puma, Netflix, and Samsung. These brands have allocated a specific sales margin percentage for environmental projects like IMPT. When a user purchases a product on the platform, the sales margin is held as IMPT tokens until they have enough to swap for a carbon credit.
The presale for IMPT is ongoing and has already managed to raise well over $12.5 million since launching.
Calvaria – Bringing Non-Crypto Natives to the Industry
The last presale causing a buzz in the industry is the P2E battle card game – Calvaria.
Calvaria is attempting to be an ambassador for the crypto industry by attracting crypto and non-crypto natives to its game. The game has a free-to-play version, downloadable in the Play Store, and a play-to-earn version that allows players to earn rewards. Furthermore, the game is also available on both PC and mobile devices.
Calvaria stands out from other battle card games as you don’t need a crypto wallet to play the free-to-play version, which should help attract non-crypto natives.
The game is gaining considerable traction in its presale due to unique features such as its staking function, a user-orientated DAO, mini-games to earn more, and a scholarship system.
Calvaria is building for 2023 and is currently hosting a presale for its native token, RIA. The presale has already raised $2.1 million and is quickly selling out.
Presales Provide Relief From Downward Market Pressure
Overall, presales are the way forward for safe investing during the current market crash. The fact that prices aren’t subjected to downward market pressure during presale stages means your investment won’t constantly be taking hits each time Bitcoin loses support.
The only downside to presales is that you’ll have to wait for the project to reach its funding goals before you can withdraw your initial investment.