Bitcoin Nears $50K, but an Analyst Forecasts Decline to $18K
With Bitcoin inching ever closer to $50,000, it seems like it will eventually break this crucial barrier.Few hours back, the leading cryptocurrency got within $300 of the milestone, but has since somewhat retreated, although trading nearly a percentage point higher than the earlier day.
In spite of appearing to be trading ever stronger and with numerous $100,000 forecasts, one expert thinks the numero uno cryptocurrency will crash and fall below $18,000 in the months ahead.
While writing this article, Bitcoin was trading at $49,747, up ~$200 in the previous day. During that period, it reached an intra-day low of $48,281 and an intra-day high of $49,932. This was Bitcoin’s peak price since May 16, when it was falling from the historical high in April. In spite of being within striking reach, one analyst thinks the $50,000 mark will end up being a significant resistance level.
In an interview with Bloomberg, Konstantin Anissimov, the executive director of the CEO.IO exchange, stated: “For the time being, the $50,000 zone represents the next big barrier.” The current price run-up is not necessarily a sign of a significant move yet, but should more purchasers join the bandwagon, the price may breach $50,000. In that case, a panic may erupt, spurring the price to rise to the medium-term goal of $55,000.
There are many forecasts for Bitcoin, calling for a price of $100,000. Lyn Alden, the creator of Lyn Alden Investment Strategy, a research firm aimed at institutional investors, is among those who believe BTC will double in valuation. Business Insider quoted her as saying: “I believe we’re still in the early to mid-stages of its long-term trend at this point.” That continues to be the optimum risk-reward allocation, in my opinion, as a sort of “set it and forget it” allocation.
Nevertheless, not everyone is upbeat. Gareth Soloway is among many who think that, notwithstanding its market exuberance, a steep decline is on the horizon. In an interview with Kitco News, Soloway, the chief market strategist at InTheMoneyStocks.com, a capital markets research and consulting company, said, “Bitcoin will likely reach the $18,000-$20,000 level. There is absolutely no doubt in my mind.”
Specifically, Soloway thinks that in the near-term Bitcoin will first test the “head and shoulders neckline,” which he says is now around the $50,000-$52,000 mark. According to the expert, Bitcoin is following the same path it has always followed. In 2013, it rose from $100 to $1,300 before correcting to $450 and then rising again, ultimately reaching $100.
Something comparable occurred in 2017. It rose to $20,000, then fell to $11,000 before rebounding back to $17,000 before eventually bottoming out at $5,000.
“This market is mirroring the two major trends that happened in 2013 and 2017. Nothing to indicate that it is going to be different at this point.”