Due to the cryptocurrency’s recent inability to maintain any upward momentum, the bear market in bitcoin has persisted. How low can the price drop before it reaches a bottom?
What Is The “True” Bottom For Bitcoin?
From their peaks in 2021, bitcoin prices have fallen by more than 67%.
The crypto market is accustomed to sell-offs this severe. Approximately 80% of the cryptocurrency’s 2017 highs were lost in a crash in 2018, but in 2020 it recovered and reached new all-time highs.
However, there are a number of important distinctions between the 2018 Bitcoin sell-off and the 2022 crypto winter. Panic selling and margin calls on positions held by retail investors were two major factors in the 2018 sell-off.
Concerns about contagion endangering the stability of the entire crypto market have exacerbated the 2022 sell-off. Voyager Digital and Celsius Network, two crypto lending companies, were recently forced to file for bankruptcy due to severe liquidity issues.
Following the collapse of TerraUSD (UST) in May, investors also started to lose faith in the stablecoin market recently.
What Is Moving Bitcoin’s Price Right Now?
Following the release of September inflation data, the price of bitcoin significantly declined on Thursday morning. The information showed that inflation increased more than anticipated, rising 0.4% over the previous month and 8.2% over the previous year. These figures caused bitcoin to crash below $19,000 and keep falling, quickly approaching the $18,000 price level.
Bitcoin prices have been low but steady over the past week, battling to stay above $20,000 for more than a brief period of time. The token’s price has largely stayed within the $19,000 range.
The drawbacks of Bitcoin are the result of a string of unfavorable economic reports over the past few months, including the most recent inflation data, that have caused market sentiment to shift negatively. In spite of these price declines, bitcoin has performed better recently than other assets such as stocks, gold, the European Euro, the Japanese Yen, the Chinese Yuan, and the British pound.
In contrast to other assets over the past month, bitcoin has recently proven resilient. This may be because the token is developing into a fantastic conduit for U.S. dollars as other currencies buckle, or it could be that long-term crypto investors remain unfazed by recent wallops to the experts’ assessments of the US economy. In any case, the price of bitcoin is still very low, but it is holding steady while other assets are losing value; the token’s price has decreased by more than 60% from the beginning of the year.
Some people are speculating whether cryptocurrency is displaying signs that it will stop following the stock market given the poor stock performance compared to relatively stable crypto performance. At least for now, experts are unsure if that is the case. Although the price correlation between stocks and cryptocurrencies has loosened recently, analysts believe it will take more time for cryptocurrencies to diverge.
Even though bitcoin is remaining stable, it is still not out of the woods. Numerous occasions at the end of the year, such as the midterm elections, inflation reports, Federal Reserve meetings, and a potential peak in the U.S. economy, have the potential to change the course of events. dollar strength, not to mention the world is still reeling from the effects of the incursion of Russia into Ukraine
“The market remains vulnerable and on edge, not necessarily by threats from more crypto projects going bust but from the difficult economic situation we are facing right now,” said Martin Hiesboeck, the director of Uphold’s blockchain and cryptocurrency research. “In other words, as with any news or metric relating to cryptocurrencies, the price of bitcoin is more influenced by the gas supply to Germany.”
The conflict in Ukraine, rising prices, and a changing monetary policy in the U.S. will likely continue to drive more volatility in the coming months, experts say.
Over the past six months, Bitcoin has only briefly risen above $45,000, and it hasn’t done so since December. 25, 2021. Despite the ups and downs, the price of bitcoin is still a lot lower than the most recent record high it reached in November, when it exceeded $68,000. Bitcoin is still worth more than twice as much as it was a few years ago, despite the recent price decline. These ups and downs are common occurrences for bitcoin.
Bitcoin Value: Btc Is Hard To Value
Bitcoin is not supported by any assets with intrinsic value, nor does it produce cash flow, revenue, or earnings. As a result, it may be challenging for analysts and other experts to determine a reasonable value or price target for the cryptocurrency.
Because there are a fixed limit of 21 million total bitcoins, proponents of the cryptocurrency claim that, like gold, bitcoin’s value is based on its rarity.
Since there is a fixed supply and no intrinsic value for Bitcoin, its price is solely based on market demand. Therefore, investor sentiment in the cryptocurrency market is the most crucial factor in predicting the future direction of Bitcoin prices.
Some analysts use technical analysis of the Bitcoin price chart to pinpoint crucial short-term support and resistance levels, as well as a potential price point for the cryptocurrency’s bottom.
How Much Does Bitcoin Breakout?
According to Julius de Kempenaer, senior technical analyst at StockCharts.com, the Bitcoin chart indicates that a breakout price above $22,500 could push Bitcoin to its next resistance level of about $27,500. Beyond that, however, it might be challenging.
“The long-term trend for BTC is still down after breaking support around $30,000, which at the same time marked the completion of a big top formation,” de Kempenaer says.
He also says he’s not convinced the Bitcoin bottom is in just yet, given the selling pressure in Bitcoin seems to be strong, and “ease of movement” is the downside for now.
“Will that amount ($17,500) be the lowest Bitcoin ever trades for? I am not so sure,” he says. “As a possible long-term objective, I’m keeping an eye on [$12,500].”
Bitcoin Price Prediction For 2023: Between $38,000 And $100,000
Coming off its most recent all-time high in November, a Bitcoin price of $100,000 was simple to predict in the latter part of last year. The prediction game has become even more difficult since Bitcoin’s significant decline.
“The most knowledgeable educators in the space are predicting $100,000 Bitcoin in Q1 2022 or sooner,” We were informed back in November 2021 by Kate Waltman, a certified public accountant with a focus on cryptocurrency based in New York.
The current consensus among experts is that bitcoin will fall well short of the $100,000 threshold in 2023. According to Jurrien Timmer, director of global macro at Fidelity Investments, the price of bitcoin in a year is more likely to be in the $40,000–$50,000 range.
“I have a sense of what bitcoin is worth and what it’s worth in the future,” he says. “Bitcoin will appear much better at $30,000 than at $70,000 if the demand model predicts that its intrinsic value is $50,000 today and $100,000 in two years (my thesis).”
According to a poll of about 4,400 Americans conducted by intelligence firm Morning Consult, cryptocurrency investors anticipate bitcoin to rebound to about $38,000 by the beginning of 2023. Chris Brendler, a senior research analyst at D.A. Similar predictions by Davidson include that bitcoin will be worth at least $38,000 by the end of this year and $50,000 by the end of 2023.
Bitcoin Price Prediction For 2025: As High As $100,000
Bitcoin can still increase to $100,000 or more, as many experts predicted late last year, according to crypto experts, it will just take longer.
“What I expect from Bitcoin is volatility [in the] short-term and growth [in the] long-term,” says Kiana Danial, founder of Invest Diva and author of “Investing In Cryptocurrencies For Novices.”
Investors should expect a “pretty sustainable” rise in According to Timmer, the $100,000 mark will be reached by Bitcoin’s long-term value, which is driven by natural market growth. “I remain bullish on Bitcoin as an aspiring store of value in a world of ongoing financial repression,” he says.
By 2025, according to Bloomberg commodity strategist Mike McGlone, once the bear market has passed and cryptocurrency prices have recovered, the price of Bitcoin may still reach $100,000. By 2025, at least $100,000 will be spent on bitcoin, according to a panel of more than 50 cryptocurrency experts assembled by Finder.
“Just a matter of time, really. That’s purely measuring, supply by code is going down, demand and adoption are going up,” During an interview with Kitco News in June, McGlone said.
Bitcoin’s Price Trajectory Will Always Remain Uncertain
The price forecasts for Bitcoin discussed here may seem a little sporadic to you, and that is entirely accurate. Bitcoin is a virtual currency that isn’t backed by any kind of reserve, so many different things affect its price. In light of this, it is regrettably impossible to make a precise Bitcoin price prediction. In the wake of this shocking crash, we can only hope that the market recovers, but nothing in the crypto world is ever guaranteed.
Continued Drop
Since the market is still looking for a bottom, the declines must worry cryptocurrency investors. Early in the year, declines were sparked by obvious catalysts like the collapse of the Terra stablecoin and the insolvencies of cryptocurrency lenders like Celsius Network and Voyager Digital. Voyager is presently on the auction block, according to reports from Wednesday.
Less is known about the causes of more recent declines, though. The volatility of stock markets around the world, which cryptocurrency often resembles, could be one factor.
Just last November, Bitcoin and many other cryptocurrencies reached record highs, with Bitcoin even flirting with the $68,000 mark.
