Indodax CEO Oscar Darmawan: Bitcoin Price Drop To Rp300 Million Level Is A Four-Year Cycle

JAKARTA - Indodax CEO Oscar Darmawan assessed that 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 and is a four-year cycle that has happened before.

"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 2014," said Oscar in a statement in Jakarta, quoted from Antara, Saturday, July 2.

According to him, the 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.

"Usually the price of the majority of cryptocurrencies will follow Bitcoin as the crypto asset that has the largest market capitalization. The current bearish moment is precisely the moment that long-term traders often take advantage of to accumulate crypto portfolios by buying the crypto they want at a cheap price," said Oscar.

In Indodax itself there are more than 200 types of crypto assets and not all of them have decreased like Bitcoin. There are several other crypto assets that are on the rise, such as 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 Bitcoin prices fall or Ethhedge and Bnbhedge whose prices will also increase when Ethereum and BNB prices fall.

Derivative tokens can usually be used by short-term traders who still want to reap profits when the market is bearish.

He explained that traders or investors need to understand the importance of technical analysis and apply good financial management. Oscar said, technical analysis is a way of seeing 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 trend lines. What are crypto price patterns and so on," said Oscar.

He added that novice investors can learn technical analysis tips for Bitcoin and other cryptocurrencies on the internet, including learning from the Indodax.academy website and the official Indodax social media which provides many tips and explanations about technical analysis.