Experts explained to what level the value of the first cryptocurrency can decrease if the current local correction goes into a global "bearish" phase
Trader Ton Weiss believes that Bitcoin retains the potential to grow to $ 100,000, but it will take longer for the coin to overcome this psychological mark. According to the analyst's forecast, this may happen in the first quarter of 2022. Weiss also warned that there is a likelihood of a further decline in the asset and the onset of a deep correction phase. Topplabs.org experts predicted what will happen to the market if quotes continue to decline.
There is always risk
In the current situation, a more aggressive tightening of monetary policy, as well as the introduction of strict regulation of cryptocurrencies in the United States, can negatively affect the market and provoke a collapse in quotations, says Mikhail Karkhalev, financial analyst at Currency.com crypto exchange. Such events could undermine investor interest in digital assets in the medium term, he said.
On November 24, former Secretary of State and former US Democratic presidential candidate Hillary Clinton called for tighter cryptocurrency regulation to protect against technological manipulation by Russia and China.
“Until the passions subside, few will dare to invest serious capital in cryptocurrency because of the too high risks,” the analyst explained.
Usually, after the completion of the "bull" cycle during the year, the price of bitcoin collapsed by an average of 85% from the peak, Karkhalev recalled. If we draw a parallel with the previous "bearish" cycles, then Bitcoin may collapse to $ 10 thousand, the analyst predicted. In his opinion, such an outcome is real, but unlikely, since the crypto market today is significantly different from what it was a year ago.
“I believe that there will be no such collapses on the crypto market,” Karkhalev is sure.
The dominance of the "bears" does not last forever
If the market plunges into a deep correction phase, the bitcoin price will not drop below $ 28-30 thousand, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. In his opinion, investors who bought a coin in the region of $ 30 thousand will not allow the first cryptocurrency to fall to $ 20 thousand. Also, support at the level of $ 28-30 thousand will be protected by miners who are not profitable to sell coins at low prices, the expert added.
“As soon as the rate tries to go lower, it will be immediately bought back by those who understand that the dominance of bears does not last forever and that the crypto market has gone through more than one phase of deep correction,” Soshnikov noted.
Attention to regulation
At the moment, bitcoin is in the stage of correction after setting a new all-time high above $ 69 thousand on November 10, reminded the head of the analytical department of AMarkets Artem Deev. In his opinion, in the near future, a collapse to the level of $ 28-30 thousand can occur only in the event of a strong negative. Such a trigger could be a complete ban on cryptoassets in a large state with a developed economy, the analyst suggested.