Bitcoin’s price has risen to $22,000 after a dramatic recovery trend. Although this is good news for bitcoin, it has not been all roses for the digital asset. It had suffered from several dips in the past. The market is still in bearish territory so bitcoin needs to maintain a certain level to continue its high price. It could fall more than 85% since its peak.
Bitcoin Should Be Above $17,000
Numerous prominent financial industry figures have expressed their opinions on where bitcoin’s price should go. Clem chambers, CEO of ADVFN is one of them. Chambers is also well-known as a financial analyst and has stated that the digital asset must not fall below $17,000 in order to keep growing.
The interview was conducted by Daniela Cambone, Stanberry Research’s financial analyst. She stated that bitcoin could reach $40,000 if the momentum continues. If bitcoin fails to maintain its $17,000-18,000 level, it is possible that it will hit the $10,000 mark.
Chambers is more inclined to believe that bitcoin will fall even though its price is rising. According to Chambers, the analyst anticipates that bitcoin’s price will fall to $17,000 or even reach $10,000.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Chambers’ outlook is in line with what has been recorded in the cryptocurrency market in the past. Assets lose 80 to 85%, and more in some cases. This historical trend actually puts bitcoin’s price close to $10,000 before the bottom is in.
However, what does BTC say?
The impending Ethereum Merge has been responsible for most of the recent crypto market pump. By triggering an increase in interest, the network was able to drag the rest of market with it. There isn’t as much support for Ethereum as it needs, as other currencies such as Bitcoin are merely riding on the Ethereum coattails.
Market relief rallies like the current one have led to profit taking, which raises the selling pressure. Glassnode highlights this in its report. The company notes profit taking at the moment, similar to June’s, which brings the market to a low of 0.58 and puts it squarely in bear territory.
Going by this, Chambers’ prediction for bitcoin being more likely to fall below $17,000 than recover to $40,000 swims into clearer view. The profit margins for BTC holders have risen over this period, creating a greater hold sentiment from investors.
Although the accumulation trend has been swift, it is not strong enough to propel the price above $30,000. As a result, the number of BTC addresses that are new has increased significantly, along with those of existing addresses.
Featured image taken from Coinpedia. Chart available at TradingView.com
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