In the past few weeks, the crypto market has really not been so seductive. For example, Bitcoin’s price has hit as low as $30,000 in May, and it is yet to recover fully. The major falloff came as a result of various reasons—first, China’s ban. The government of China banned cryptocurrencies in the country. Their reason was it was making its citizens risk most of their property since the market generally rides on speculations from most of the traders online.
The other reason that affected Bitcoin’s price was Elon Musk. The Tesla and SpaceX CEO said through his Twitter page that his company would no longer accept Bitcoin as a means of payment. He reasoned that Bitcoin mining was using too much energy. If the individual’s responsible find better ways to mine the crypto, it will be a real attraction to many investors. Many traders do not have much faith in crypto at the moment since Elon’s tweet made them lose lots of money.
The experts of the bitcoin-loophole.app analyzed the market and claimed that it should not come as a surprise to people that the price halved on such short notice. They claim that investors should always put their money into the market with volatility in mind. It is impossible to predict if the price will go up or down. According to Gavin Smith, Panxora CEO, the Bitcoin asset had risen too much over the past year, and the sudden pullback that came should not surprise traders. He says the market correction happened due to many investors withdrawing their profits.
Some crypto watchers predicted a further loss when the initial crash happened. According to them, the fall below $40,000 represented a breach of a key technical barrier. The loss experienced is, however, inevitable for crypto investors. Such a loss is too sudden, unfortunately. The question that keeps ringing in many investors’ minds is usually, “Will the crypto market undergoes a bear winter like the one experienced in 2017?”
The founder of Placeholder, Chris Burniske, says that the downtrend going on in the Bitcoin scene made him recall a tale about an earthquake. Elders and children who were experiencing it for the first time witnessed the earthquake. The children were scared since it was their first time witnessing such a thing, but the elders reassured them that it was just an earthquake and that it happens from time to time. That is the same thing happening in Bitcoin right now. Those who have been in the market for a while believe that the low prices will only last for a short time, but it is a scary moment for the newbies, for they expected a smooth ride and maybe quick cash. The veterans in the crypto scene said it’s the perfect time to hold and if you have more money to risk, buy the dip.
Chris Burniske believes that Bitcoin is not in a bear market yet and that the uptrend will be back like it never left. He believes people are going to reflect on the cycle and laugh off the dip. He says that quality projects like Bitcoin and Ethereum will survive all of the hits they get.
Currently, it is tough to predict the trend Bitcoin is going to take since the ride is still very turbulent. Bitcoin does not produce any revenue and, at the same time, has no underlying business model. That makes it pointless to use the traditional Wall Street methods to try to come up with a value that it will be worth in the coming weeks. Smart investors, however, depend on price analysis. They observe how investor behavior influences the market trajectory, and that way; they can somehow predict where Bitcoin is going next.
An example of a smart investor is JC Parets, a market analyst specialising in the Fibonacci sequence for years to forecast the direction Bitcoin will take. The Fibonacci sequence dictates the natural proportions in everything through an additive pattern. At the beginning of this year, Parets had predicted that Bitcoin would reach the $45,000 mark after it got to $30,000. His next prediction was that it would hit $70,000, and if not, it would most probably get back to $30,000, and we all witnessed that. He’d said that it’d go to $20,000 if the $30,000 level broke. Thankfully that has not happened yet.
What next for Bitcoin?
It seems $30,000 is the floor for the Bitcoin price. It seems investors unanimously agreed $30,000 was low enough and decided to buy it at that price. Many investors are now hopeful the market is slowly recovering and that the crypto will shoot again. In a recent price prediction from the experts of bitcoin-loophole.app, Bitcoin is predicted to hit $100,000 by the end of 2021. Maybe all hope is not lost after all.