Cryptocurrency markets are currently experiencing increasing volatility as global economic conditions continue to deteriorate against the backdrop of rising inflation and interest rates.
Bitcoin (BTC) prices could fall to $ 10,000 before hitting a bottom, as global financial markets headwinds and bullish market sentiment collapses is doing.
Many traders have laughed at the idea that BTC will fall below its all-time high in 2017, but the recent fall to $ 17,600 suggests that the bear market may be different than last time. It suggests.
Here’s what analysts have said about Bitcoin’s potential to fall to $ 10,000 in the coming weeks.
If the rate of decline is the same as the bear market in the past ..
Insights on how BTC will perform in the short term can be gained by looking at its performance in the 2013 and 2017 bear market cycles. In 2013, Bitcoin’s largest decline was 85% and the bear market lasted 407 days. The largest decline in 2017 was 84%, which lasted 364 days.
Recent report of Arcane ResearchAccording to the report, the current bear market has continued for 229 days, and the maximum rate of decline so far is 73%.
“If Bitcoin follows the cycle of the past, the bottom should occur at a price of $ 10,350 sometime in the second half of the fourth quarter of 2022.”
Despite a potential 85% decline, Arcane Research said, “Bitcoin is currently involved in a wide range of financial markets, with FRBs, US elections, cryptocurrency regulations, and stock markets affecting its performance. It also points out.
Cryptocurrency research firm Delphi Digital has mentioned further evidence of the potential fall to the $ 10,000 range: “From a long-term market structure perspective, the next place to look is 10,000- It’s $ 12,000, “he said, posting the chart below.
The chart points out that long-term market support exists between $ 9,500 and $ 13,500.
“Coincidentally, this area is in line with the expected lows if BTC experienced an 85% drawdown from the highest to the bottom.”
Is Bitcoin already at the bottom?
Not all analysts expect a drop to $ 10,000. For example, Will Clemente of Blockware Solutions. According to Clemente, Bitcoin’s current range offers a good opportunity for accumulation.
Bitcoin is incredibly cheap right now.
It has only traded this far below its 200-day trend and its aggregated cost basis for 3% of its entire existence. pic.twitter.com/kW6BysdkQ0
— Will Clemente (@WClementeIII) June 27, 2022
Glass nodeThe bear market floor model, such as Bitcoin’s 200-week moving average, balance price, and delta price, has been shown to be consistent with the Mayer multiple of 0.6 analyzed by Clemente.
Grassnode writes:
“Of the 4360 trading days, the same situation occurred only 13 times (0.2%) and only twice in the past, January 2015 and March 2020. These points are: Marked in green on the chart “
Based on the Delta Price Index, BTC has a potential low of $ 15,750.
In addition, John Bollinger, the inventor of the Bollinger Bands trading index, said that Bitcoin prices may have bottomed out.Suggest。
“The picturesque perfect double (M-shaped) top on the monthly chart at BTCUSD is tagged with the lower bound of the Bollinger Bands, as confirmed by bandwidth and% b. There are no signs yet, but here. Would be a logical place to bottom out. “
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph. All investments and trading are risky and require your own research when making decisions.
Risk Disclosure: The articles and articles on Arover.net do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies.
