Bitcoin Must Fall: Crypto Analyst Predicts Retracement to $30,000
Historical Price Performance Supports the Assertion
Bitcoin enthusiasts may need to adjust their expectations as a crypto analyst predicts a retracement for the world’s most valuable coin. According to CryptoCon, a prominent analyst in the field, Bitcoin must first fall back to $30,000, which is considered a critical support level, before it can continue its upward trend. This assertion is based on a thorough analysis of historical price performance and the observation that no Bitcoin cycle has reached its recent high without revisiting the monthly least square moving average (MA), which currently stands at $30,358. If past performance is any indication, CryptoCon believes that Bitcoin could likely dip to this level before experiencing a sharp recovery.
The Moving Average as a Floor for Bitcoin Prices
CryptoCon highlights the consistency in which the moving average has acted as a floor for Bitcoin prices, even during periods of high volatility. The only exception to this trend was the 2019 bear market, which was triggered by the unprecedented events of COVID-19. Though some observers argue that Bitcoin has already reached its bottom, CryptoCon maintains that further confirmations are needed. Based on the analyst’s analysis of past price behavior, it is highly likely that the coin will drop as low as $30,000 by February or March.
Wall Street’s Accumulation of BTC Contradicts the Prediction
While some Bitcoin holders may be disappointed by this prediction, hoping for a swift recovery to $70,000 and beyond, recent developments in the crypto market paint a more optimistic picture. The approval of multiple spot Bitcoin Exchange-Traded Funds (ETFs) by the United States Securities and Exchange Commission (SEC) has provided a boost to Bitcoin prices. Additionally, renowned financial institutions such as Fidelity and BlackRock have been accumulating BTC over the past weeks, signaling confidence in the cryptocurrency and potential price growth. This accumulation is seen as a positive factor that could drive the coin towards its previous highs in January 2023.
A Contrarian Position and the Future Sustainability of BTC
CryptoCon’s prediction takes a contrarian position, going against the general public’s expectations of price increases. Whether this retracement will help solidify Bitcoin’s position and establish a more sustainable long-term trend remains to be seen. The Fear-and-Greed Index, which measures market sentiment, indicates that bulls expect prices to rise in the coming sessions. However, investors should exercise caution and conduct their own research and analysis before making any investment decisions.
Disclaimer:
The article provides educational information and does not represent NewsBTC’s opinion on whether to buy, sell, or hold any investments. Investing in cryptocurrencies carries risks, and readers are advised to conduct their own research before making any investment decisions. The information provided in this article is to be used entirely at the reader’s risk.
Analyst comment
This news can be evaluated as neutral. The analyst predicts a retracement for Bitcoin to $30,000 based on historical price performance, but recent developments, such as the approval of Bitcoin ETFs and accumulation by financial institutions, suggest a more optimistic market. It remains to be seen if the retracement will solidify Bitcoin’s position and establish a sustainable long-term trend. Investors are advised to exercise caution and conduct their own research before making any investment decisions.
