The price of Bitcoin is likely to scare investors in the near future. According to several market analysts, the cryptocurrency is at risk of collapsing below the $20,000 threshold.
Bitcoin suddenly crashed. The digital currency fell back below the $30,000 threshold following panic over the crash of UST, the algorithmic stablecoin issued on the Terra blockchain. The entire cryptocurrency, and non-fungible token (NFT) market contracted, losing billions of dollars in valuation within days.
According to several analysts, the descent into hell of King Bitcoin should not stop there. This is particularly the opinion of the analyst and trader Rekt Capital. On his Twitter account, he estimates that the price should continue to fall in the near future.
BITCOIN THREATENS TO COLLAPSE :
His analysis is based on previous movements observed in the market. In the past, the price of Bitcoin has always contracted by 80% during “Bear market” phases. In this case, the cryptocurrency should first drop below the key threshold of $20,000 before it can start rising again. By falling below 20,000, BTC would touch the lowest point of the downward phase.
The analyst expects a lowest level located around 15,812.64 dollars. Obviously, technical analysis and the history of the course of the currency are not enough to prophesy the evolution of a value. Other factors, such as macro-economic factors, can influence the progress of Bitcoin.
Always highly correlated to traditional financial markets, Bitcoin is also likely to suffer from the decline of the S&P 500 index, says Michael Wilson of Morgan Stanley, a famous American investment bank. Despite its nascent status as a safe haven, the queen of cryptocurrencies is highly dependent on market movements, including tech stocks traded on Wall Street. This factor should help pull the price of BTC down.