Bitcoin recently slid below $20k after Jerome Powell’s speech and panic selling because of Mt Gox’s massive BTC dump. This is where analysts are predicting that we might see a further decline in Bitcoin’s price. Todd ‘Bubba’ Horwitz, the chief strategist at bubbatrading.com, predicted another 50% drop in stock markets from here, and considering Bitcoin’s strong correlation with S&P 500, the same might stand true for the cryptocurrency. However, Ran Neuner and Steven Kidley believe that Bitcoin’s price has hit a bottom at $17,592.
Can Bitcoin crash to $10k?
In the past bear markers, Bitcoin has crashed nearly 80-85% from its all-time high on average. Considering a similar drop this time from its ATH of almost $69k, there is the possibility of a price drop from $10k-$13k. However, every bear market is different, and so is this one. Ran Neuner said we have already seen many major setbacks in the space since May, and the market has already been through its worst. One of the major ones was the Luna/UST collapse which took the entire crypto market by surprise.
This collapse was also the reason that many crypto lending platforms suffered immense losses, which ultimately led to bankruptcy. A good example of this was Celsius. Even though we cannot pinpoint the entire reason for the failure of these companies on Luna, it still played one of the major roles.
Ran Neuner’s thoughts on why we will see a price rebound
He said that Bitcoin’s price has moved below the 200-week MA, which is very rare. It has only happened twice before this—in 2015 and 2020. And every time other than that, the price has jumped back after touching this strong support. So, because BTC is already below this level, we could see a major rebound. We should also note that the current economic environment could play a major role in Bitcoin’s price action. If the interest rates continue to rise, then a recession will happen. Plus, we still need a solid regulatory framework that protects investors while letting the markets grow at their pace.
What are your thoughts as Ran Neuner says that Bitcoin’s price has hit bottom? And do you think we still might fall to $10k? Let us know in the comments below. And, if you found our content informative, share it with your friends.
Also Read: Experts predict a further 50% drop in the stock market from here
