The price of Bitcoin is likely to scare investors in the near future. According to various market analysts, the cryptocurrency is at risk of collapsing below the $ 20,000 threshold.
Bitcoin suddenly crashed. The digital currency fell below the $ 30,000 threshold after panic over the fall of UST, the algorithmic stable currency issued in the Earth blockchain. The whole market of contracted cryptocurrencies and non-consumable tokens (NFT), losing billions of dollars in valuation in a few days.
According to several analysts, the descent into hell of the bitcoin king it shouldn’t stop here. This is especially the opinion of analyst and trader Rekt Capital. On his Twitter account, he estimates that the course should continue to decline in the near future.
Bitcoin threatens to crash
Its analysis is based on previous movements observed in the market. In the past, the price of Bitcoin has always shrunk by 80% during the “bear market” phases. In this case, the cryptocurrency should come first falls below the key $ 20,000 threshold before being able to climb again. Falling below 20,000, BTC would hit the lowest point of the downtrend.
The analyst expects a lower level around $ 15,812.64. Obviously, technical analysis and the history of the currency exchange rate are not enough to prophesy the evolution of a value. Other factors, such as macroeconomic factors, can influence the progress of Bitcoin.
Always closely related to traditional financial markets, Bitcoin is also at risk suffered the fall of the S&P 500 index, says Michael Wilson of Morgan Stanley, a well-known American investment bank. Despite its nascent status as a safe haven, the queen of cryptocurrencies is heavily dependent on market movements, including technology stocks that are listed on Wall Street. This factor should help lower the price of BTC.
Despite the decline, many investors are advising to bet on Bitcoin. This is the case of Robert Kiyosaki, the famous best-selling author specializing in finance and personal development. He says Bitcoin will eventually become a safe haven as the dollar threatens to fall.