Ever since the strong rejection at $10,000 seen on the weekend, Bitcoin has tumbled lower and lower, with the bearish trend that has formed showing no signs of abating.
The trend has reached a point where over the past few minutes, the price of the leading cryptocurrency has spiked below $9,000 — the lowest the asset has traded at since January 28th.
Thus far, the level has been defended as last-minute buyers step in and the price encounters the buy orders in that region. This is to be expected: prominent cryptocurrency trader Flood called $9,000 a “do or die” region for the cryptocurrency, noting how this level acted as crucial support for the asset over the past couple of weeks.
Despite the defense of this level thus far, many top analysts are convinced that Bitcoin is likely to trend lower prior to bottoming, citing prices in the $8,000s, and some even in the $7,000s.
Bitcoin Has Room to Fall: Top Analysts Say
Analysts are currently divided over where Bitcoin will fall to, though a theme has been consistent throughout their analyses: BTC has room to fall from where it sits today.
Filb Filb — a pseudonymous trader that called Bitcoin’s surge towards $10,000 in September 2019 and the subsequent reversal to bottom at $6,400 — recently shared some insight into this, discussing where BTC could finally bottom. In a comment (slightly edited for clarity) published to his Telegram channel, he wrote:
“Downside targets [of] the 200-day moving average, 20-week moving average, and 50-week moving average seem good for a bounce, but the 200-day moving average is never really lost in a bull run, so losing that could be more of a significant issue. Nevertheless, I’m looking for longs down there.”
For some much-needed context, the moving averages for Bitcoin are as follows:
- The 200-day moving average is around $8,800.
- The 20-week moving average is at $8,500.
- And the 50-week moving average is around the same as the 20-week moving average.
Filb Filb’s prediction that there exists a confluence of support that can be bought around $8,500 has been echoed by Mac, a trader who has been quite accurate in calling the recent reversal.
In a recent comment, he remarked that “$8,450 will be the bottom for this week,” indicating he sees support forming around that level, presumably acting as a base for the next move.
Some have been a bit more bearish. Analyst Jonny Moe suggested that Bitcoin bottoming at $8,000 “seems really obvious,” referencing the convergence of psychological and historical technical support there.
Though, he added an addendum to this comment, explaining how the existence of the abovementioned convergence is likely going to force investors to front-run $8,000, allowing Bitcoin to bottom likely somewhere around $8,200.
Bitcoin’s Outlook Still Extremely Bullish
There’s no doubt the recent price action has shaken the confidence of traders: the past few days have seen dozens of millions of dollars worth of BitMEX long positions liquidated as Bitcoin has fallen, forcing investors to the sidelines.
Investors and executives the industry across have unsurprisingly stuck to their script, asserting that the future is bright for Bitcoin.
Per previous reports from Blockonomi, legendary venture capitalist Tim Draper asserted that Bitcoin is still on track to follow his long-held prediction:
I’m still holding to my prediction. I think Bitcoin will hit $250,000 in 2022 or at the beginning of 2023 , and that is a big move from where it is here.
As to why he thinks BTC can appreciate so rapidly in such a short period of time, Draper drew attention to Bitcoin’s benefits over fiat payment systems (PayPal, Visa, etc.), before adding the cryptocurrency is likely to be seen as a safe haven asset moving forward.
There’s also Justin Sun, CEO of Tron and BitTorrent. The enigmatic cryptocurrency executive told CNN in a recent interview that he expects for the price of Bitcoin to surmount $100,000 by 2025 — not as optimistic at Draper’s “$250,000 by 2022” forecast, but still bullish nonetheless.