The discussion around the price of Bitcoin, the dominant cryptocurrency, remains a popular subject with varied predictions from analysts. Recent price drops have sparked renewed debates, as some experts caution about a potential downward trend while others view it as a chance to buy.
Following a significant rally, the cryptocurrency market is currently going through a cooling-off phase. Bitcoin has seen a decrease of over 15% from its peak, similar to pullbacks observed in previous bull markets. This disparity in opinions has stirred up conversations about the future direction of this digital asset.
Bitcoin: A Golden Opportunity Or Fool’s Gold?
A prominent Bitcoin critic and advocate for gold, Peter Schiff, predicts that the recent decline in Bitcoin’s price could be the start of a more significant fall. He suggests that the crucial support level of $60,000 might not hold, potentially leading to a drop as low as $20,000. Schiff points out the recent rise in gold prices, hinting towards a shift in investor preferences back to traditional safe-haven assets.
Nevertheless, not all analysts share Schiff’s pessimistic outlook. Tuur Demeester, a cryptocurrency analyst, believes that the $60,000 level could serve as a base for the ongoing correction, representing a relatively modest 20% decline from the recent high. This aligns with recent market movements where Bitcoin briefly dipped below $60,000 before bouncing back.
Bitcoin: I think its likely that $60k ends up being the bottom of this correction. 20% drawdown from the high. pic.com/UueSUnfImy
— Tuur Demeester (@TuurDemeester) April 18, 2024
Beyond The Dollar Sign: The Crypto’s Long-Term Fundamentals
Looking beyond short-term price movements, some analysts are delving into Bitcoin’s underlying fundamentals. Willy Woo, another analyst, highlights the significant drop in the inflation rate of Bitcoin, now lower than that of gold. This could position the digital asset favorably in the long term, potentially surpassing gold in market capitalization.
BTCUSD is now trading at $64,261. Chart: TradingView
Analysts at Glassnode, a blockchain data platform, present a more technical perspective. They identify the 50-day Exponential Moving Average (EMA) at $62,000 as a critical support level. Maintaining a price above this level could indicate a potential surge towards $72,000. They suggest that investors view short-term drops as opportunities to accumulate BTC at discounted prices.
📊 The April 19th #Bitcoin #halving has come and gone, and it has created quite the split narrative. Although the crowd is leaning #bullish based on history’s price performance after these events occur, the ability for $BTC to climb to $75K, $100K, and beyond will largely depend… pic.com/1AL97h2KZ7
— Santiment (@santimentfeed) April 24, 2024
On the other hand, Santiment’s fundamental analysis shows a rise in uncertainty following the Bitcoin halving. Historically, the crypto’s price has surged after this significant event cycle, instilling a sense of optimism.
The potential shift towards $75,000 and eventually $100,000, as per Santiment researchers, “will largely depend on whale and shark behavior, dormant coins re-entering mainstream circulation, the network’s realized gains vs. losses, and numerous other factors.”
Featured image from Pexels, chart from TradingView
