The price of Bitcoin, the leading cryptocurrency, continues to be a hot topic, with analysts offering a range of predictions. Recent price drops have reignited the debate, with some experts warning of a downward spiral while others see a potential buying opportunity.
The cryptocurrency market has experienced a cooling period after a significant rebound. Bitcoin has lost more than 15% from its all-time high, reflecting pullbacks seen during previous bull runs. This has sparked contrasting opinions on the future trajectory of the digital asset.
Bitcoin: a golden opportunity or fool's gold?
Longtime Bitcoin critic and gold advocate Peter Schiff believes that the current price decline marks the start of a steeper decline in Bitcoin. He argues that the psychologically important support level of $60,000 will not hold, which could trigger a decline to $20,000. Schiff points to the recent rebound in gold prices, suggesting a potential shift in investor preference toward traditional safe-haven assets.
However, not all analysts share Schiff's pessimism. Tuur Demeester, a cryptocurrency analyst, believes that the $60,000 level could be the floor of the current correction, representing a relatively modest 20% drop from the recent high. This matches recent market movements, where Bitcoin briefly fell below $60,000 before recovering slightly.
Bitcoin: I think it's likely that $60,000 ends up being the low point of this correction. 20% drawdown from the high. pic.twitter.com/UueSUnfImy
– Tuur Demeester (@TuurDemeester) April 18, 2024
Beyond the Dollar Sign: The Long-Term Fundamentals of Crypto
Beyond immediate price movements, some analysts are focusing on Bitcoin's underlying fundamentals. Willy Woo, another analyst, highlights the significant drop in the inflation rate, now lower than that of gold. This could position the digital asset favorably in the long term, potentially leading to a higher market capitalization than gold.
BTCUSD is now trading at $64.261. Chart: TradingView
Analysts at Glassnode, a blockchain data platform, offer a more technical perspective. They identify the 50-day exponential moving average (EMA) at $62,000 as a key support level. If the price sustains above this level, it could signal a potential rise towards $72,000. They recommend that investors view short-term dips as opportunities to accumulate BTC at potentially discounted prices.
📊 April 19 #Bitcoin #reduce by half came and went, and it created quite a divided narrative. Even if the crowd is leaning #bullish based on historical price developments after these events occurred, the ability to $BTC climbing to $75,000, $100,000 and beyond will largely depend… pic.twitter.com/1AL97h2KZ7
– Santiment (@santimentfeed) April 24, 2024
At the same time, Santiment's fundamental view demonstrates the increase in ambivalence following the Bitcoin halving. The price of crypto has historically increased following this cycle of significant events. This component is the feeling of optimism.
According to Santiment researchers, the move to $75,000 and ultimately $100,000 “will depend largely on the behavior of whales and sharks, the return of dormant coins to general circulation, the gains made versus the losses of the network , and many other reasons. »
Featured image from Pexels, chart from TradingView