It’s hard to see any light at the end of the tunnel when it comes to Bitcoin today. For the first time since December 2020, Bitcoin prices fell below $21,000 and the coin has shed more than 50% of its value and more than 24% in the past week. If you’re a long-term holder, this is perhaps the first time you’ve seen your portfolio flashing red in years. Nevertheless, there is still hope if you know where to look.
What the experts are saying
One of the most vocal critics of Bitcoin has been Peter Schiff who, in a reply to a tweet by Davinci Jeremie, claimed that “$2,000 is the only price that happens to Bitcoin”. Another popular trader, Peter Brandt, was more conservative, but also made a Bitcoin prediction that it could dip to as low as $12,700 in the short-term.
On the flipside
The first positive prediction comes from Peter Brandt himself whose Bitcoin prediction involved a fall to $12k. In a recent tweet from the legendary trader, he expressed his conviction that the $19k to $20k support is very strong and is unlikely to be broken through despite the selling pressure.
This sentiment was echoed by Julius de Kempenaer, senior technical analyst at StockCharts.com who told Forbes that “There is a bit of support to be found in the 16.5-19.5 area”, although he did warn that stronger support would be found around $12k – $13k, just as Brandt had predicted.
Finally, the greatest support is expected to come from the Fed, which is expected to raise interest by 75 basis points. Such a radical move would help to curb inflation and resume investors’ confidence. Since Bitcoin is seen to have bottomed out, it will be one of the top choices for investors who want a bargain.