Renowned best-selling author Rich Dad Poor Dad, Robert Kiyosaki, wrote on Twitter a couple of days ago that he is waiting for the price of Bitcoin to drop to $1,100.
RICH Dad lesson. “LOSERS quit when they lose.” Bitcoin losers are quitting some committing suicide.’WINNERs learn from their losses. I am waiting for Bitcoin to “test” $1100. If it recovers I will buy more. If it does not I will wait for losers to “capiulate” quit then buy more.
— Robert Kiyosaki (@theRealKiyosaki) June 28, 2022
Summary
Robert Kiyosaki’s omen about the price of Bitcoin
The tweet begins precisely with a quote from his famous book:
“LOSERS quit when they lose”.
He is probably referring to those who are selling Bitcoin at a loss these days. Kiyosaki seems to believe that these kinds of loss-making sales may continue.
Then, again paraphrasing the quote from his book, he adds:
“WINNERs learn from their losses. I am waiting for Bitcoin to ‘test’ $1100. If it recovers I will buy more. If it does not I will wait for losers to ‘capitulate’ and quit and then buy more”.
The logic behind this reasoning is that after a big collapse in the price of Bitcoin there may be a rebound. However, this rebound will only begin when weak hands have sold more or less all the BTC they own.
During a bear market, when it is difficult to expect large gains in the short term, many inexperienced investors who bought during the bull run panic, believing that the price may fall again. Then again, these are often people who bought while the price was going up, just because they were convinced that it would go up again.
So after having made prediction mistakes due to over-optimism, they may make another one due to over-pessimism.
Kiyosaki says that in these moments one could also make good trades, but only if these weak hands capitulate completely, that is, lead the price to the true bottom, the minimum peak below which they have no more BTC to sell. At that point, a new buying phase could begin, with the selling pressure reduced and the buying pressure increasing.
Kiyosaki’s prediction does not deviate from reality
Of course, not everyone agrees with this hypothesis, but it is worth mentioning that there are also other traders besides Kiyosaki who think that a similar dynamic could actually come true.
For now, Kiyosaki’s hypothesis is that this bottom stands at $1,100, which is the high reached in late 2013 during the first post-halving cycle. This is not in line with that assumed by other analysts, as many argue that the bottom could remain above $10,000.
It is worth noting that a month and a half ago Kiyosaki predicted that the bottom was at about $17,000, and indeed the bottom this past month and a half has been $17,500. Now he predicts another bottom, much lower, contradicting what he stated in mid-May.
It is worth noting that he is not the only analyst to argue that at this stage the bottom of Bitcoin’s price could be well below the $17,500 touched a few days ago.
