Crypto markets have become extremely volatile and uncertain since popular exchange FTX crashed and created a wave of crisis. Meanwhile, Bitcoin and popular altcoins tried to start with a recovery phase. However, the bears realized their increasing dominance despite small leaps. Meanwhile, a crypto analyst pointed to a larger drop in Bitcoin price. Here are the details…
The expert name sets the bottom level for Bitcoin
As we reported on cryptokoin.com, the price of Bitcoin has dropped 65 percent over the year amid the failure of firms like FTX and Celsius, as well as a wider crypto winter that saw price drops across various cryptocurrencies. BTC is currently trading around $16,500. But Digital Wealth CTO Daniele Bernardi said the price will drop further. The CTO used the following statements:
The lowest is $14,500, but I guess it’ll only be like that for a few days. We may experience a return to growth next year.
Bernardi’s company predicts Bitcoin price based on mathematical analysis that trains computer models based on previous Bitcoin price data. Bernardi uses the following expressions:
Bitcoin is extremely repetitive in its cycle, based on the halving that happens roughly every four years, reducing the rewards for miners. So basically we analyzed a lot of quantitative data on this and discovered a huge pattern in these movements.
Bernardi pointed to halving
Bernardi said that his approach is not purely “technical” but also relies on “behavioral” components to predict future price movements. “Bitcoin has a hard time finding a fair price of value because for most people it’s about that sentiment,” he said. “If they’re afraid, they’ll sell. If they think Bitcoin can grow, they start buying it,” he said. However, he added that there are discernible patterns and drivers behind the Bitcoin price. He also used the following expressions:
In our published research, we discovered that Bitcoin pricing is driven by demand in the long run. Even during this [declining] period, user acceptance is increasing… which means that in the long run, Bitcoin will continue to grow despite its huge volatility.
Every four years, Bitcoin has experienced a “halving” in which the block reward earned by miners is halved. The next halving will take place in April 2024. A few months after each halving, the price of Bitcoin soars. This leads Bernardi to suggest that buying Bitcoin just before halvinf would be a good strategy. He states that halving has increased the shortage of new BTC in the market. He states that if the demand remains stable, the halving will be enough to raise prices.
Another bottom prediction has arrived
On the other hand, analyst Mustache became another expert who explained his expectations for BTC. BTC price has broken out of the ascending wedge, which is largely considered a bearish cross and is heading towards the lower support near $16,300. Meanwhile, if there is a break above these levels, the bulls could regain their dominance and push the price above $16,500, which seems highly unlikely at the moment. However, the rising bearish sentiment and pressure is likely to push prices down, while the bulls may fail to hold the crucial $16,000 and reach the $15,850 levels.
Bitcoin price has been maintaining a pattern of rejection at certain levels since it started lowering its 2022 peaks. According to Mustache, a popular analyst, BTC price has been consistently rejected across many lines of Mayer’s technical analysis. Therefore, after the recent rejection, it has been proven that the price may continue to slide lower and test lower support levels.
https://twitter.com/el_crypto_prof/status/1595838062017523712
Therefore, the analyst believes that the Bitcoin (BTC) price could continue to drop drastically and reclaim levels below the current support zones. Meanwhile, the bulls are also trying hard to hold the price. But if the extreme bearish pressure builds, the buying volume may not be able to make up for it, which could push the price down further in the next 12 to 16 hours.
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