Bitcoin price has remained at the $19,000 reinforcement 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 expectation of volatility in Bitcoin raises both anxiety and anxiety at the same time. According to experts, a real drop to $14,000 means that crypto bull markets are invalidated. Because, during a bear market, the Bitcoin price never fell below its previous record level. However, the accurate drop to $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 the record level in 2018, it will not eliminate the fact that the two countries use the asset as legal currency. In addition, there are 50,638,279 investors in the BTC network.
Hashrate is at record levels with 258.22 EH/s. In the middle, Bitcoin has a market cap of around $365 billion. It also has a 38.52 percent dominance over altcoins. Koindeks.com As we reported, Bitcoin fell by about 71 percent from its record of $ 69,000 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 the information 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 expected to test three lower price levels compared to previous trends. Sherpa predicts a drop to $18,800 in BTC. In this middle, Bank of America analysts draw attention to Bitcoin’s movements compared to other cryptocurrencies. He believes this shows that investors may begin to see it as a “safe haven” again.
Their claims follow the era in which Bitcoin is seen 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 0.50 and 0.69 correlations with the S&P 500 and gold, respectively. With the stimulus package given due to the COVID-19 pandemic surrounding global economies, Bitcoin has seen a parallel process to 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.