Today’s Bitcoin price drop was modest. It fell by 10% in 24 hours, and traded at its lowest level in over a month.
At 5:30 p.m. ET, the world’s most popular digital currency fell to $42,503.88 according to CoinDesk data.
Additional CoinDesk data reveal that the cryptocurrency has fallen 9.7% since hitting an intraday high of over $47,000 earlier this morning.
Bitcoin prices have rebounded somewhat since then, reaching $43,750 at 8:30 p.m. ET.
What price is the digital asset likely to be after these recent price movements? A number of market analysts shed light on this matter.
[Ed Note: Investing cryptocoins and tokens is highly risky as the market is not regulated. It is possible to lose all of your investment.
“While this week’s Bitcoin drop was severe, the downtrend has been well-established in Bitcoin since November 2021,” said David Keller, chief market strategist for StockCharts.com.
He stated that “this distribution pattern has pushed down the price below the December low of 44,000,”
“Price support should not be expected between current levels, the September 2021 low of around 40,000.
Pat White, cofounder, and CEO of Bitwave also addressed the subject.
He stated that Bitcoin’s decline from 69k was like what they call war. Long moments of boredom were interrupted by days of terror.
White stated that ‘Obviously, each 10k notch worth watching is worthwhile, 40k the next natural flooring’.
“There is most likely an extremely stable floor in this range. As all things crypto were taking off last years, many businesses and institutions were really worried that they might miss the train.
“Additionally, investors may have begun to think about their taxes and started liquidating/taking profits.”
Collin Plume (CEO and founder of My Digital Money), also spoke out about the situation, identifying key technical points.
He stated that Bitcoin will see support at $45,000 (where it will be comfortable for a while) and resistance at $55,000.
Plume also discussed how altcoins, digital currencies other than bitcoin, are impacting the market’s largest cryptocurrency.
“If we look at the larger picture, Bitcoin’s volatility could be linked to altcoins like Solana, NEO and Cardano. Altcoins like Cardano, NEO, and Solana are helping to spread the investor interest and create a healthy market.
“I believe that Bitcoin will regain its momentum in 2022, once all the dust settles around these altcoins,” said a spokesperson.
White offered a bullish outlook on the future of this digital currency and also shared his thoughts.
He said that if you consider the current movement to be mostly technical (there was no major news to cause this) then you will see lots of people eager to take advantage of the bargain sale.
“I expect that we will see a quick bounce off this, but don’t be surprised to see a rebalancing in Ethereum, Solana and other tokens.