Trading Expert: Bitcoin Could See These Disastrous Levels!

Trading expert Gareth Soloway said that if the “worst case scenario” happens, the Bitcoin price will see historical bottoms.

Gareth Soloway shared $3,500 “worst case scenario” for Bitcoin

Gareth Soloway, chief market strategist at InTheMoneyStocks.com, says Bitcoin (BTC) will likely see a new correction in its struggle with the macroeconomic environment. In a new interview on October 12, he suggested that the worst-case scenario for Bitcoin is a correct fix to $3,500. If this level is reached, as much of the cryptocurrency market will likely resemble what Amazon (AMZN) experienced during the Dot-com bubble. In this midst, Soloway drew attention to the possibility of Bitcoin hitting the bottom in a year before it rallied again. However, before that, he says that Bitcoin will likely rise with gold:

As Bitcoin matures and regulation gives people more faith, there will be a pivot… I believe there will be a small jump in the near future and then fluctuate up to $12,000 to $13,000. I’m worried after that. This point, where prices will drop below $10,000 to $8,000, or in the worst-case scenario, below $3,500, will be similar to Amazon.com’s dot-com collapse.

Bitcoin’s relationship with classical markets

According to Gareth Soloway, as Bitcoin develops and leaves stocks, it will likely behave like gold. The analyst also issued a warning that it will take time for the difference in stocks to emerge. Soloway continues by saying that the willingness of institutions to invest in cryptocurrencies will be essential for Bitcoin’s future growth regardless of the prevailing macroeconomic factors. However, he thinks that the regulatory framework greatly influences institutional input, as it makes his investors feel confident.

The effect of the dollar on Bitcoin

Referring to the impact of the dollar, Soloway predicted that Bitcoin will likely correct towards $12,000. According to the expert, the strong performance of the dollar threatens to destroy all risky markets, including Bitcoin. Elsewhere, Bitcoin recorded small profits after falling in the wake of US inflation data. Koindeks.comAs you follow, BTC is currently trading around $19,400.

Sales reached $8 billion after US inflation hit 8.2%

Following the US inflation information, Bitcoin’s market cap wiped $8.48 billion in two hours. Notably, the latest numbers are leading analysts to expect higher rate hikes amid analysts. The Fed’s tightening policies have reduced demand for risk-sensitive markets like Bitcoin. The current environment is also bleak for stocks. However, the gains on October 14 make cryptocurrencies strong against the dollar again. The latest data show the September CPI increased by 8.2% year-on-year, compared to the expected 8.1%. At the same time, the core CPI stood out as the highest level since 1982, reaching 6.6% annually. Although Bitcoin initially lost $19,000, it touched $19,889.15 today, showing that the bulls are still behind.

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