Advertisement
AD

Main navigation

Analyst Forecasts Massive Drop in Bitcoin Price

Advertisement
Tue, 18/10/2022 - 21:47
Analyst Forecasts Massive Drop in Bitcoin Price
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Bitcoin (BTC) could be on course to repeat bearish market trends from the 2018/2019 bear cycle market analyst Aaron Arnold told Kitco News in an interview

Advertisement

The Altcoin Daily co-founder and commentator said that the price action of BTC is already reminiscent of the 2018/19 bear market. BTC is consolidating at around $19,000 to $20,000 just like it was consolidating near $6,000 at the time. 

This is where the danger lies for the present market, he noted. While opinions in 2018 were that BTC had found a bottom, the price eventually dropped 50%. The risk of this repeating in the current market exists. He said:

Back then, from my memory, a lot of people thought $6,000 was the bottom. Today, a lot of people think that we don't have much further to go, and usually everybody thinks the same thing.

Arnold stated that BTC could fall to support at $11,000 to $14,000, or even worse drop to $6,000. One reason for this is because of the abundance of bearish indicators in the market. These include high inflation, dollar devaluation, sovereign debt crisis, OPEC oil production cuts, as well as the fact that BTC is still highly correlated with stocks. 

Could the current BTC bear market be different?

In contrast to Arnold's perspective, other analysts have argued that the current bear market has characteristics that set it apart from previous downturns. In a report, trading firm Cumberland shared that the current bear market cycle is remarkable for massive trading volumes that have persisted. 

With daily trading volumes of over $50 billion, the firm asserted that the market is still healthy despite the price crash. According to a U.Today report, the benchmark crypto could also be showing signs of decoupling for the stock market.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD