The cryptocurrency market is now going through a period of increasing volatility as the global economic situation continues to deteriorate against the background of rising inflation and interest rates.
As the headwinds affecting the global financial market knock down all traces of bullish sentiment, many cryptocurrency investors predict that the Bitcoin (BTC) price could fall to $ 10,000 before the bottom of the market is felt.
While many traders have mocked the idea of BTC falling below the 2017 historic high, a recent drop to $ 17,600 suggests that this bear market may be different from the last one.
Here’s what some analysts are saying about the possibility of Bitcoin falling to $ 10,000 in the coming weeks.
Historical declines point to a low of $ 10,350
You can get an insight into how BTC can perform in the short term by looking at its performance on bear market fluctuations in 2013 and 2017. In 2013, the maximum yield for Bitcoin was 85%, which occurred over a 407 day period. The maximum yield in 2017 was 84% and this period lasted for 364 days.
According to a recent Arcane Research report, the current cancellation has lasted for 229 days and has so far been a maximum withdrawal of 73%.
Arcane Research said,
“If Bitcoin follows the drawing of these batches, the bottom should come sometime late in the fourth quarter of 2022, at a price of up to $ 10,350.
While there is always the possibility of an 85% withdrawal, Arcane Research also noted that “Bitcoin is now much more intertwined in broad financial markets, where the Fed, US elections, cryptocurrencies and the stock market affect its performance.”
Further evidence supporting the possibility of falling into the $ 10,000 range was touched upon by cryptocurrency research firm Delphi Digital, which published the following table and noted that “From a long-term marketing perspective, the next place we need to look is $ 10. K- $ 12 K. “
Based on the chart above, support for a high timeframe build is likely to be between $ 9,500 and $ 13,500.
Delphi Digital said,
“Incidentally, this area is in line with the expected minimum if BTC experiences an 85% contraction from maximum to low.”
Would $ 10,000 be a good place to go for a long time?
Not every analyst expects a reduction to $ 10,000. Take, for example, Will Clemente of Blockware Solutions. According to Clemente, the current range of Bitcoin reflects a good place for accumulation.
Bitcoin is incredibly cheap right now.
It has only traded this well below its 200 day development and the combined cost base for 3% of its entire existence. image.twitter.com/kW6BysdkQ0
– Will Clemente (@WClementeIII) June 27, 2022
Additional information from Glassnode shows that the 200-week moving average of Bitcoins, the equilibrium price and the delta price in the bear market floor model are in line with the 0.6 Mayer Multiple measure that Clemente analyzed.
“Only 13 of the 4,360 business days (0.2%) have ever seen a similar situation, which has occurred in just two previous events, January 2015 and March 2020. These dots are marked in green in the image.”
Based on the Delta price measurement, which is still intact, the potential minimum for BTC is $ 15,750.
Connected: Bitcoin’s short-term outlook improved slightly, but most traders are far from optimistic
John Bollinger, creator of the popular Bollinger Bands business index as well suggested that Bitcoin prices could have bottomed out.
According to Bollinger:
“A perfect double (M-type) top in BTCUSD on the monthly chart along with BandWidth confirmation and% b leads to a signal for the lower Bollinger Band. There is no sign of that yet, but this would be a logical place to put it. “
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should do your own research when making a decision.
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