It is no longer news that flagship asset bitcoin and other cryptocurrencies have been on a downward spiral since the start of the year. In fact, pundits and analysts have branded the 2022 market as a bearish one.
There are two factions in the crypto community at the moment, those that believe the worst is yet to come, and bitcoin is heading below its current levels to plunge to $10,000. On the other side, there are optimists that are of the opinion that bitcoin is definitely going to overcome its current struggles, and $50,000 – above is plausible. Which faction do you belong to?
Speaking with Kitco News on August 16, Kevin Wadsworth who predicted the $20,000 earlier in the year and Patrick Karim, technical analysts of Northstar & Badcharts, discussed their next price targets for Bitcoin.
Giving an outlook on Bitcoin after the cryptocurrency hit the target of the $20,000 mark he outlined, Wadsworth indicated with percentages that Bitcoin could fall as low as $10,000 based on technical analysis.
“Looking at the Bitcoin chart we find ourselves in an inverted arc, the opposite of a cup pattern. We have been rising in a bit of a bounce off that $20,000 area and it’s taken us up and formed a bearish rising wedge-hitting resistance.”
In particular, he added:
“There are a number of technical analysis techniques and features of this chart that make it more probable it’s going to break to the downside and head down towards that $10,000 – $12,000 target. I would assess the odds at around 70% to 80% likely that we break down to see these lower lows and about 20% to 30% probability of moving to the upside.”
Also, according to a veteran crypto market analyst in the second week of September 2022, Bitcoin could dive another 50% from current levels if the upcoming winter proves a major test for Europe.
In an interview with Cointelegraph, Filbfilb, creator of trading suite DecenTrader, forecasted a potential BTC price bottom coming in at as low as $10,000 in 2022.
As the European energy crisis intensifies, risk assets face a major test, he believes, and the extent to which crypto suffers depends considerably on how diplomacy can win out to avert a major emergency into 2023.
There is still hope
As much as prophets of doom continue to predict lower levels for bitcoin and market prices continue to tumble, there is still a semblance of hope.
Institutional investment continues to grow which means that ‘whales’ still believe in the crypto space. MicroStrategy, the largest corporate holder of bitcoin, announced Tuesday morning that it had purchased an additional 301 bitcoins for approximately $6 million in cash.
The latest bitcoin buying spree raises how much bitcoin the business intelligence cloud company owns to 130,000 bitcoins, up from 129,699 as of the end of the second quarter. According to the filing, the company’s latest bitcoins were purchased at an average price of approximately $19,851 per coin.
Conclusion
The crypto market is going through a difficult phase at the moment and there are too many bearish indicators. But, calling for $10,000 levels sounds a little bit far fetched.
It seems as if bitcoin has found a bottom. We can only hope for a price surge from here.
