Bitcoin price (BTC) has been struggling to generate a sustainable rally since the start of this year. Bears are on top of the market; they have effectively pulled out 80% of value from bitcoin price since the beginning of this year.
Investors and traders are wondering how long the bearish trend in the crypto markets will exist. Although crypto markets are unpredictable due to their unregulated nature and lack of fair value concept, market pundits are presenting their price outlook based on their experience, historical trends, and future fundamentals.
Bitcoin (BTC) Price Today – BTC / USD
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Anthony Pompliano Expects More Pain
Anthony Pompliano, the strategist in Morgan Creek’s Digital Assets division, believes bitcoin price will find a bottom around 85% discount from its all-time high. His bitcoin price forecast is based entirely on his experience in the digital markets
Pompliano stated: “85% from the all-time high is about where we’ll end up. Puts it around $3,000. Came close over the weekend but probably a little bit more to fall.”
Bitcoin price (BTC) continues to trade around the $4000 level after hitting this year low of $3500 last week. The largest coin has lost close to 40% of value in November compared to the previous month, the most substantial selloff in a single month since April 2018. Its total market cap also plunged below $70 billion for the first time in the last fourteen months.
Anthony Pompliano didn’t support his price prediction with technical and fundamental factors; the expert believes bitcoin was massively overvalued and the selloff is attributed to profit taking and price correction.
“Bitcoin was overvalued in December ‘17. There are more sellers than buyers this year. So the price goes down,” he said.
Bitcoin Outperformed Other Markets
The analyst believes traders and investors should remember three things:
- Bitcoin is all about transaction settlement and it is the most secure way of moving value from one to other in the world. It’s got to be worth something. This is because it can’t be worth zero.
- It is still the best performing asset class in the last decade. BTC has outperformed Dow, S&P, and Nasdaq during the longest bull run.
- The price movements and infrastructure upgrade were all done by retail.
Bitcoin price movements are quite unpredictable because the crypto market moves on speculations and traders sentiments. The recent collapse in crypto prices and warnings from financial regulators has reduced investor’s confidence. Bitcoin and the rest of the market require resumption of investors’ confidence to create the bull run.