Analysts are divided on how Bitcoin’s price will develop over the next few weeks. Is everything as boring as it is now? Crash to $12,000? Is there a clear upward trend? Everything seems possible.
Bitcoin and the crypto markets still fail to develop any significant upward momentum. Almost all digital assets have been idle for weeks, punctuated only by brief setbacks and recoveries. In short: Bitcoin’s price action is boring – but that could soon change. However, analysts are divided on how the number 1 cryptocurrency will develop in the short term: Will the feared crash to $12,000 still occur – or will Bitcoin now start its next uptrend without a prior correction?
Bitcoin: Another 50% Crash Coming?
Blockchain data provider Santiment aptly sums up the current sentiment among investors in an analysis: “The crypto crowd is anything but euphoric about the markets.” Expect the fourth quarter,” the researchers concluded. Bitcoin (BTC), Binance Coin (BNB), Ripple’s XRP and Cardano (ADA) are all bullish, only Ethereum (ETH) is “slightly bearish”.
“The #crypto crowd is far from euphoric about the markets. But the lingering negativity and bearishness has faded as traders expect a rebound here in Q4. $BTC, $BNB, $XRP and $ADA all indicate bullishness from the crowd, while $ETH is only slightly bearish.—Santiment (@santimentfeed) 20 October 2022
In fact, the recovery is reflected in many factors, just not the price – which is falling. Bitcoin is down 0.57% in the last 24 hours and is trading at $19,114 just above the psychologically important $19k area. The cryptocurrency needs to stop here because: A drop below it is always accompanied by the possibility of further losses – especially in the current market environment dominated by fear.
This is what the pseudonymous chart expert Josh Rager warns about, for example. According to the analyst, demand is exhausted and the lack of volatility threatens a similar scenario to 2018: At that time, Bitcoin fell from $6,000 to $3,000 in a very short time. “The last few weeks remind me of September 2018, right before the market crashed brutally and went to its knees,” says Rager. His hope: that the Bitcoin exchange can pull it back up – otherwise there is a risk of another crypto crash. It sounds bearish, but there are now more and more voices that consider an imminent recovery to be likely.
“Never a fan of the bouncing ball pattern with rallies, it ever needs to hope the stock market can pull Bitcoin back up. Otherwise, well, you know” —Rager (@Rager) 16 October 2022
Bitcoin to $100,000 – “Just a Matter of Time”
For example, top on-chain analyst Will Clemente sees clear bullish signals for Bitcoin. In particular, institutional demand on Coinbase, the largest US crypto exchange, is currently very strong. All in all, he therefore considers Bitcoin to be “very undervalued” at current prices. Clemente is not alone in his assessment. Ki Young Ju, CEO of highly cited research firm Cryptoquant, also states in a new tweet (https://twitter.com/ki_young_ju/status/1582840466772410368): Wealthy investors, so-called whales, are currently accumulating huge amounts of Bitcoin – on Binance, according to the Volume the world’s largest exchange.
“Hales accumulates $BTC in #Binance. Since the #Bitcoin price hit the $20,000 level, @Binancespot’s trading volume dominance skyrocketed and is now 84%. The second largest is Coinbase, 9%. Not sure if these whales are institutions using prime brokers or crypto OGs for now.—Ki Young Ju (@ki_young_ju) 19 October 2022
Spot trading volume is generally “skyrocketing,” Ju emphasizes. Not just at Binance – overall, volume across all exchanges has “twenty-fold” in the last six months. The only question that remains is: When will the BTC price catch up? Bloomberg commodity analyst Mike McGlone does not want to give a precise answer to that. However, in a new interview on YouTube, he reiterates his conviction: Bitcoin will rise to $100,000 – it’s only “a matter of time”.
“Bitcoin Primer: Rising Demand, Adoption, Regulation – #Bitcoin may be entering an inexorable phase of its migration to the mainstream and at a relatively discounted price. FASBA’s recent ruling that companies must use fair value accounting to measure crypto assets” —Mike McGlone (@mikemcglone11) 19 October 2022
Bitcoin is currently entering an “irresistible maturity phase” beginning its “migration to the mainstream”. With corresponding consequences for the price. Trigger for the next price explosion: the falling supply in combination with rising demand. The only downside: it may take a little longer. McGlone’s assessment: In “five to 10 years,” it could be time.