Bitcoin and other cryptocurrency markets are rebounding on Friday after hitting lows not seen in years.
As of publication, Bitcoin has since soared back over $70,300 following yesterday’s crash.
But is the worst really over? Or is the worst yet to come? Despite the recent rebound, one of the experts we talked to warned of further decreases to come.
In a statement provided to Mashable before today’s bounceback, early Bitcoin investor Michael Terpin foresaw an uptick in the market before another potential downturn.
“Most likely we will have a bounce back over $80k before the final plunge, exhausting weary ETF investors into capitulation, despite how oversold we are right now,” Terpin said. “It would be awesome if we could rip the band-aid off quickly and hit the bottom this week or month, but there is really strong buying resistance at $65k and $60k. If we lose that support, price could drop all the way to $45k.”
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Other analysts have also predicted that Bitcoin could drop as low as $40k if the current market trends continue.
According to a CryptoQuant analysis, investors should still proceed with caution as crypto whales are currently very active and “account for a disproportionately large share of total deposits.”
“This behavior typically signals that whales are aggressively moving funds onto the exchange, a precursor often associated with heavy selling (dumping) or hedging activities,” the report says.
Head of Bitfire Research Allen Ding told Mashable in a statement that a rebound in the market is “likely to be constrained by the pace of institutional capital returning and the unwinding of market leverage risks.”
With big holders still actively selling, analysts say crypto prices could continue to fluctuate and even start to plunge once again.
The current price range, even after the rebound, also provides a challenge for Bitcoin miners. As CoinDesk reports, the current Bitcoin price is well under the average cost of $87,000 to mine a single Bitcoin. The outlet notes that this has traditionally been one of the signs of a bear market.
Topics
Bitcoin
Cryptocurrency
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