The crypto market witnessed a serious drop this week and traders are now wondering if the market has bottomed out or if there is another crash on the horizon. Analysts explain whether Bitcoin (BTC) has bottomed and their predictions for its next move.
Bitcoin falls on broader risk appetite
cryptocoin.com As you follow, Bitcoin has shown a bearish trend from $25,000 to $20,000 in the last three weeks. Crypto analyst Crypto World states that in a 3-day trend, Bitcoin price crossed the $20,000 bearish signal and continues to believe that even tougher times are ahead. As the western world turns towards a recession, Bitcoin is also predicted to have many rainy months in the red before recovering.
BTC 24-hour chart / Source: CoinMarketCapCrypto World notes that a near-term target of $19-20,000 is expected for the market to stabilize before falling after that. He also states that if the price drops below $18,800 in the next few days, there will be no support and it will quickly drop to $17,000.
Leading crypto passes stress test
Crypto analyst Michaël van de Poppe says crypto markets are breaking out and will likely drop before the end of the quarter (QE). The analyst adds that despite his prediction, there is a great glimmer of hope in the current jolt of crypto. In this context, the analyst makes the following statement:
Ultimately, crypto and Bitcoin are going through a stress test with all the negative news kicking in. However, from here on out, crypto will only get more adoption as people will start to hate governments and banks. This is inevitable.
Looking at the leading crypto Bitcoin in particular, the analyst cites a few price points he would be interested in for BTC trading, noting the following levels:
Levels I would look for for Bitcoin: Potential sales around $20,600 and/or $21,400. Potential longs at $18,100 – $18,600 including bulls.
Source: Michael van de Poppe/TwitterBitcoin in a ‘Be or Die’ state
An analyst nicknamed Cred warns that Bitcoin is at a critical moment and could collapse if BTC fails to sustain support at a key price level. In this direction, the analyst says that a ‘be or die’ moment has come for Bitcoin. The analyst states that if BTC fails to hold the $19,000 to $20,000 price range, the asset could fall back to the $16,000 range, down more than 15% from its current value.
Source: Cred / TwitterWhen will Bitcoin rise again?
Another crypto analyst, Benjamin Cowen, predicts that it may take another six months for Bitcoin to rise again, and by then its price will fluctuate. The analyst also warns that crypto markets could inflict huge losses on both bears and bulls before a sustained upward move begins. Accordingly, the analyst makes the following assessment:
The time to macro bullish reversal in crypto is probably around six months. By then, apathy will likely begin for many people. Your job is to not lose sight of the big picture, even if you feel like the crypto world is collapsing around you. In 2023, both bears and bulls are ‘mortified’. The bears ‘mortified’ in January and February, giving the bulls a false sense of security. When both sides have improved enough, only then can we go back.
BTC price could rise again soon
Crypto market education and analysis platform IncomeSharks says the rise for Bitcoin has begun. According to his post, there is uninterrupted ‘fear, doom and gloom’ right now. IncomesSharks later tweeted that it was the volume coming into BTC. He added that volume could have an impact on the price in late March or earlier. The latest post by IncomeSharks highlights that the volume highlighted in its previous tweet is starting to play.
Bitcoin and cryptocurrencies can evaporate!
Crypto analyst Benjamin Cowen identifies the worst-case scenario for crypto markets as prices turn downward. The analyst says crypto markets could give up hundreds of billions of dollars in a correction similar to the dot-com crash. Cowen looks at the performance of the Nasdaq in the dot-com era and draws parallels with today’s crypto markets. It uses the market rally and drop percentages during the dot-com era to indicate where the overall market cap for bitcoin and other cryptocurrencies could go.
According to the analyst, the combined market cap of all crypto assets could be in a position to witness another phase of capitulation, similar to the Nasdaq falling by around 30% before bottoming out in 2022. The analyst explains his views as follows:
Where would it go (total crypto market cap) if we went 30% below the previous low? It will bring the total market capitalization to around $500 billion, which represents a sizable correction from current levels. This is 30% below the previous low. From current levels, this represents another 40% to 50% correction. And again, we know that these percentages are subject to minor changes as they will not be exact. So if he’s going to follow it maybe he’s 40% down from here. Or maybe it could drop 50% and get you closer to $400 billion… I think the worst-case scenario for crypto would be a market cap of between $400 billion and $500 billion for the entire asset class.
Bitcoin will set the trend of the next week
According to crypto analyst Shayan Chowdhury, if the Fed introduces strict monetary policies and rate increases to combat the rise of high inflation, it could significantly affect the price of Bitcoin and bring the asset down to $15,000 in another collapse.
