An analyst suggested that bitcoin might drop below $30,000, and such an instance is highly likely. Katie Stockton, founder, and managing partner of Fairlead Strategies, made the analysis and revealed her suggestion.
She says that bitcoin might be up for a painful selloff if it fails to hold the $40,000 support level. She also added that the cryptocurrency market is losing its momentum compared to the equities market.
Bitcoin plummeting might trigger another bear market
She suggested that if bitcoin falls below the critical support level, we might witness another bear market instead of a corrective phase. In the 24-hour window, bitcoin traded at a low of $38,338 and slowly ascended to $40,122, its current trading price.
Bitcoin’s smaller buddy ethereum also plummeted below the $3,000 level to $2804. But it slowly picked the pace and is now trading at $3,002. The only coin that seems to have outrun the current market condition is Dogecoin. It is highly influenced by Elon Musk and the latest groundbreaking news of Elon Musk finally acquiring Twitter.
Dogecoin gained 23% in the last 24 hours and is now trading at $0.1589 at the time of writing.
Bitcoin estimates have shifted dramatically since the beginning of the year, with some analysts now predicting a murkier 2022 for the cryptocurrency as global economic circumstances erode investor confidence.
A new Finder’s research has trimmed bitcoin’s projection to $65,000 by the end of 2022, thereby diminishing hopes for a new all-time high this year.
Bitcoin’s price would reach $65K by the end of the year, according to Finder’s study, down from a prior projection of $70K. The Finder’s research is a conclusion of handpicked research from over 35 experts and analysts. A vast majority of analysts were gloomy about BTC’s short-term prospects. The study further added to it.
Although no specific rationale was given, one analyst speculated that Bitcoin’s dependency on fossil fuels might limit its growth.