While bitcoin price has already lost close to 80% of its value from all-time high and the coin has recently hit this year low of $3500, prominent analysts are suggesting investors wait for a further decline in price.
The cryptocurrency market leader continues to trade around $4000 level over the last week – with small sideways movement.
The range bound movement in BTC price over the last week show that traders aren’t allowing bitcoin price to fall below the key support level. The total crypto market cap has also been trading around $130 to $140 billion over the last week.
But Here Why Analysts Expect Bitcoin Price to Hit New Bottom Yet
Analysts believe that the cryptocurrency market is near the end of the bearish cycle – which means prices could go even lower before starting stabilizing in the following months. They also suggest investor’s trade carefully and don’t get over excited about the small recovery in the past few days.
“Tread carefully – this pump wasn’t a ‘bullish’ move. The higher we go, the less likely we continue going higher. We’re at the end of a bear market. There is no hope or reason for any bullish moves outside of ranges. Bitcoin is not going to break 6k in the next couple of months, period. A very limited upside to playing bull short term,” the Crypto Dog says.
Bitcoin (BTC) Price Today – BTC / USD
It’s true that cryptocurrency markets haven’t been experiencing any fundamental bullish factors that could create sharp upside moves. ICE subsidiary Bakkt has extended its bitcoin future launch date from the end of this year to the first month of next year, while the market didn’t see any sign for the massive inflow of money from big investors.
Bitcoin Price Could Fall to $2000
Bitcoin price could fall to as low as $2000 to hit the bottom of the current bearish trend, says Michael Bucella, the former executive at Goldman Sachs’ Canada arm. He believes that the bearish trend is likely to end in the following months – which could create additional volatility and uncertainty in prices.
The expert, however, believes that the crypto market is offering the best investment opportunities for long-term investors.
He said, “The most successful investors are those who think in the long term and are patient. Thinking about the future, he said that several investors are waiting for this last chance to enter the market and buy virtual currencies in bulk.”
He suggested investors chase cryptocurrencies that are showing substantial improvement in infrastructure and technology. The analyst is advising investors to buy crypto coins that have strong backing from their blockchain technologies.
Small tokens are among the biggest losers of the bearish trend and SEC crackdown. Almost 70% of small-cap tokens are trading below their nominal value, according to market reports. Therefore, Michael Bucella is right that investing in cryptocurrencies that are showing solid improvement in infrastructure and technology could help in reducing the risk of the downtrend.