The latest predictions about Bitcoin's price have been hotly contested among investors and analysts, who continue to scramble from one organizer to another as the asset's price has been oscillating in the $78,000 to $82,000 range in March. 10.
DeFi analyst Adaora Favour Nwankwo tweeted that the direction of Bitcoin's price is closely tied to economic data, notably the much-anticipated Consumer Price Index (CPI) report due in the next few days. '
She described two likely cases: if the recession comes, Bitcoin will fall between $50,000 maximum, but if it is an economic boom, the price floor will be from $70,000 to $75,000.
The discussion was then taken further when Zhao Changpeng (CZ), founder of the cryptocurrency exchange Binance, replied to Nwankwo's analysis, saying, "This applies only in the short term, I think." His comment implies that, although Bitcoin might experience price hikes in a rush, its long-term trajectory is secured.
Other analysts, including Ali Martinez, have pointed to Bitcoin's current technical setup. Ali noted that Bitcoin has fallen below its 200-day moving average, which many use to gauge trend reversals. Still, he cautioned that the TD Sequential indicator indicates that the risk is level at 79820, and so holding over this could be key for any rebound.
Traders are still divided on market sentiment. Technical analyst Dave the Wave clarified that Bitcoin's corrections are "business as usual" and not a reason to panic. Instead of panicking over the recent price wars, he prescribes trusting technical analysis.
Although there are worries about possible drops, many crypto experts retain hope in Bitcoin's fate. History suggests that following its dips, Bitcoin will usually follow a trend of new ATHs after consolidation.
For instance, within months after peaking at around $19,783 in December 2017, Bitcoin and the other top cryptocurrencies fell to their lowest points in value. Indeed, after a long period of consolidation, it broke through this previous ATH in December 2020 and reached around $19,850.
Additionally, the macroeconomic landscape, such as inflation and changes in monetary policy, is likely to maintain interest in Bitcoin as a hedge against fiat devaluation.
Disclaimer: The content above is intended for informational purposes only and should not be taken as financial advice. Do your own research before investing.