Recall that we’ve been saying that we were expecting further correction from the world’s leading cryptocurrency. As we can see, the wait lasted for several months, but the decline eventually happened. Several days have passed since the drop, and as we observe, there’s been no rebound upwards. Moreover, the cryptocurrency slowly continues its descent, indicating that the correction is not over. But is it a correction?
We mentioned before that all the movement over the past year could be termed a “correction” within the context of a bearish trend that began two years ago from the $70,000 level. The ascending trend line on the 24-hour timeframe has been breached. Only the $24,350-$25,211 range saves Bitcoin from a more significant drop. Therefore, surpassing this range would mean we’re still in a bearish trend, and the “crypto winter” isn’t over.
While Bitcoin’s fall seems calm and gradual, Blockware Solutions believes a new surge is approaching. The company’s experts predict that Bitcoin’s price will reach $400,000 next year due to the upcoming “halving.” Let’s do the math. Currently, Bitcoin is priced at $26,000, meaning it should grow 15 times for the forecast to come true. Logically, Bitcoin should grow 15-fold every four years since halvings occur approximately within that frequency. At this rate, a single cryptocurrency coin would cost several billion dollars in twenty years. It goes without saying how unrealistic such a forecast seems.
However, such opinions aren’t surprising either. Typically, these views come from market participants who own Bitcoin and are interested in its continual growth. Blockware Solutions believes that after next year’s “halving,” many small miners will exit the market, leaving only the major players. The supply of Bitcoin will decrease even more significantly. However, we believe that BTC can’t grow indefinitely. There will come a time when a further reduction in supply won’t lead to a rise in the value of the “digital gold.”
On the 24-hour timeframe, Bitcoin has finally started the decline we anticipated. The price has fallen to $25,211, which is a crucial support. For new sales to be initiated, the $24,350-$25,211 range needs to be surpassed, after which the decline could continue. The target is $19,607. This is possible since the ascending trend line has been broken. Purchases can be considered only with a clear rebound from the $24,350-$25,211 range.
The material has been provided by InstaForex Company – www.instaforex.com
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