Currently, The Bitcoin Price Drop Is At The Level Of IDR 300 Million, Oscar Darmawan: Still Reasonable

JAKARTA - The decline in the price of Bitcoin which is currently at the level of around Rp. 300 million is still within reasonable limits when viewed from technical analysis. This happens and is a four-year cycle that has happened before.

Indodax CEO, Oscar Darmawan explained that through technical analysis, it can be seen that what is happening now has in fact happened four and eight years ago in 2018 and 2014.

“After Bitcoin experienced an All Time High in 2013, 2017 and 2021, there will be a significant price decline in the following year followed by a decline in other cryptocurrencies. We can see how the decline occurred in 2014, 2018 and now in 2022," said Oscar Darmawan in a press release.

According to him, this four-year cycle is often used by people to buy and collect crypto assets. Because when the price of Bitcoin falls, the prices of other crypto assets usually follow as well.

“Usually the price of the majority of cryptocurrencies will follow Bitcoin as the crypto asset that has the largest market cap. The current bearish moment is precisely the moment that long-term traders often take advantage of to build a crypto portfolio by buying the crypto they want at a low price,” he explained.

In Indodax alone there are more than 200 types of crypto assets. However, not all crypto assets have experienced a decline like Bitcoin. There are several other crypto assets that actually go up when the price of the majority of cryptos is down, namely derivative tokens.

Derivative tokens are tokens that move against the price of cryptocurrencies in general. Indodax provides derivative tokens such as HEDGE and BEAR whose prices will increase when the price of Bitcoin drops or ETHHEDGE and BNBHEDGE whose prices will also increase when the price of Ethereum and BNB goes down. Derivative tokens can usually be used by short-term traders who still want to reap profits when the market is bearish.

He said that traders or investors need to understand the importance of technical analysis and apply good financial management. Because the most important thing about trading is not the rise and fall of prices but good financial management.

Furthermore, Oscar said, technical analysis is a way to see predictions of future price movements by looking at trends that have occurred, through candles or charts. The simple way is a support pattern, where the price of crypto from below is monitored to rise. Or the opposite pattern, namely resistance, where the price will drop from the top.

“Investors need to know which candlestick indicates a price will go up or a price will go down. What is the difference between green and red candlesticks. How to identify trends using trendlines. How are crypto price patterns and so on," said Oscar.

Beginner investors or traders can learn technical analysis tips for Bitcoin and other cryptocurrencies on the internet.