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After posting a drop of $19,764 on Wednesday, bitcoin climbed back above $20,000. The largest cryptocurrency by market cap recently traded at $20,314, down 0.4% from the last 24 hours.
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The $20,000 price level continues to pivot as analysts debate whether bitcoin (BTC) will see a further decline similar to that of 2013, when it fell 85%, or 2017, with a drop of 84%. If bitcoin experiences such a drop, this time it could see prices close to the $10,000 level.
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Ian Harnett, co-founder and chief investment officer of Absolute Strategu Research, warned in a interview with CNBC that bitcoin could drop as low as $13,000, which could add an extra 40% to the current price drop.
“We would continue to sell these types of cryptocurrencies in this context,” Harnett told CNBC.
Alex Kuptisikevich, Senior Market Analyst at FxPro, said declines similar to 2013 and 2017 are not supported because BTC’s strength grew in the last bull market cycle. In 2013 and 2017 bitcoin prices increased 90-fold and 20-fold respectively, while in 2021 bitcoin only saw a 10-fold increase in price.
“For us, it is much more reliable to estimate that bitcoin will hit a long-term bottom near the previous four-year cycle highs,” Kuptsikevich said.
Some analysts say that the volatility in the price of bitcoin with the general economic conditions has diminished the demand in long-term investors.
Kuptsikevich said investors should wait before buying, even though bitcoin may be nearing a stable price level.
“It might not be the best time to buy as it may take a considerable amount of time before the crypto market can digest the recent crash and enter a new phase of sustained demand from a wide range of investors and not just hunters. of stressed assets,” Kuptsikevich said.
This article was translated by Marina Lammertyn.
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