Bitcoin price has stayed at the $19,000 support level for the past few months. However, analysts and market strategists agree that the Bitcoin (BTC) price is preparing for massive volatility. The big question now is which direction the crypto market will take in the near future. Here are the expectations of analysts for BTC…
Bitcoin price and market outlook
The prospect of volatility in Bitcoin raises fear and anxiety at the same time. A drop towards $14,000 means crypto bull markets are invalidated, according to experts. Because, during a bear market, the Bitcoin price never dropped below its previous record level. However, the drop towards $14,000 does not overshadow all previous developments. It doesn’t override the gains made in the last few years. According to Binance CEO CZ, even if the Bitcoin price drops below its record level in 2018, it will not negate the fact that the two countries use the asset as their legal currency. In addition, there are 50,638,279 investors in the BTC network.
Hashrate is at record levels with 258.22 EH/s. Meanwhile, Bitcoin has a market cap of around $365 billion. It also has a 38.52% dominance over altcoins. As we reported on Kriptokoin.com, Bitcoin fell by about 71 percent from its record of $ 69 thousand set at the end of last year. Bitcoin price is expected to continue to rise in the long term depending on the halving. The next halving is expected in 2024. According to data provided by Bitcoinblockhalf, the current Bitcoin inflation rate stands at 1.73 percent annually.
Altcoin Sherpa expects drop in Bitcoin
A popular analyst, Altcoin Sherpa, is predicting a drop in the price of BTC as it has been trading in the $19,000 range for four months. He also explained that Bitcoin is likely to test three lower price levels relative to previous trends. Sherpa predicts a drop to $18,800 in BTC. Meanwhile, Bank of America analysts point out Bitcoin’s movements compared to other cryptocurrencies. He believes this shows that investors may begin to see it as a “safe haven” again.
$BTC: I think that this one is just going to keep chopping. I don't see any real direction in the short term; looks like it's probably headed back to the demand area around $18.8k. #BTC #Bitcoin pic.twitter.com/jmAXJK9Tvm
— Altcoin Sherpa (@AltcoinSherpa) October 19, 2022
Their claims follow the era when Bitcoin was traded as a risk asset. The leading crypto’s correlation with the NASDAQ 100 went from zero in mid-August to about 0.72 in 40 days. It also had correlations of 0.50 and 0.69 with the S&P 500 and gold, respectively. With the stimulus package given due to the COVID-19 pandemic surrounding global economies, Bitcoin has been trading in parallel with risky assets in the last two years. This parallel trend continued despite global central banks such as the US FED raising interest rates to curb rising inflation.
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