Bitcoin Down To $10,000? Isn’t That Impossible?
Online chain and technical analysis indicators suggest that Bitcoin’s price may have bottomed out, but some traders remain wary that BTC’s price could drop to $10,000 in the short term. This is also not impossible.
The cryptocurrency market is going through intense volatility as global economic conditions continue to deteriorate amid rising inflation and interest rates.
As headwinds impacting global financial markets beat any bullish sentiment, many crypto investors predict that Bitcoin’s (BTC) price could drop to as low as $10,000 before finding the market bottom.
While many traders scoff at BTC dropping below its 2017 all-time high, the recent drop to $17,600 suggests that this bear market may differ from the last.
Historical Bitcoin pullbacks point to as low as $10,350
Insights into how BTC might perform in the short term can be gathered by looking at its performance during the bear market cycles of 2013 and 2017. In 2013, the maximum drop for Bitcoin was 85%, taking 407 days. The maximum drop in 2017 was 84% , and this period lasted for 364 days.
According to a recent report by Arcane Research, the current drop has been going on for 229 days, and so far, the maximum drop is 73%.
“If Bitcoin follows this blueprint of cycles, the bottom will occur by the end of Q4 2022, with prices as low as $10,350.”Arcane Research said,
While there is always the possibility of an 85% drop.
“Bitcoin is now much more engaged in the broader financial markets, with the Fed, the US elections, the regulations. Cryptocurrency and stock market regulation affects its performance.”Arcane Research notes that
Further evidence supporting the possibility of a drop to the $10,000 range was provided by crypto research firm Delphi Digital, who posted the following chart noted.
“From a high time frame market structure standpoint. The next position we have to look at is $10,000-$12,000.”
Based on the chart above, the high timeframe market structure support is likely to exist between $9,500 and $13,500.
“Coincidentally, this area lines up with the implied low if BTC experiences an 85% drawdown from peak to trough.”Delphi Digital said
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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