This week, Bitcoin prices fell below $100,000 for the first time since June, concluding a series of drops that sent the biggest cryptocurrency in the world into a bear market.
In every market, it’s normal to wonder what comes next after a significant shakeout.
Following Tuesday’s massive loss, prices picked up some steam on Wednesday and gradually moved into the green. Fortunately, most cryptocurrency experts aren’t concerned that bitcoin would have a protracted bear market despite the volatility.
The crypto market has generally entered a correction phase, according to Vitaliy Shtyrkin, CPO at cryptocurrency payment company B2BINPAY, although the situation is not overtly negative.
He stated, “We believe that the $100,000 level is the most significant support for Bitcoin.” If macroeasing and ETF inflows return, we expect a lesser positive impulse and a greater likelihood of consolidation rather than a further fall toward the mid-$80,000s.
The crypto market has generally entered a correction phase, according to Vitaliy Shtyrkin, CPO at cryptocurrency payment company B2BINPAY, although the situation is not overtly negative.
He stated, “We believe that the $100,000 level is the most significant support for Bitcoin.” If macroeasing and ETF inflows return, we expect a lesser positive impulse and a greater likelihood of consolidation rather than a further fall toward the mid-$80,000s.
Ray Youssef, co-founder and CEO of decentralized P2P network Paxful, recognized that the market is in an exhaustion period, with positive news having minimal influence on crypto values and negative news rapidly sending them down.
He does, however, also observe indications of a short-term recovery.
“The market is already reaching a possible capitulation point, which has traditionally been a predictor of future growth. Mass liquidations of long holdings frequently indicate capitulation and a potential local bottom. Following such incidents, the market frequently undergoes a temporary bounce,” he explained.
This is particularly true if cryptocurrency liquidation volumes hit extremely high levels, as they have lately, he continued.
Crypto investors have mostly relied on the Federal Reserve’s ongoing monetary easing because there is nothing like the AI story that has boosted stocks. However, it was called into question last week when Jerome Powell stated that any rate reduction are unlikely given the current health of the economy and a dearth of economic data.
This week’s rapid selling was partially caused by concerns that there would not be any good triggers in the market for a while.
Nic Puckrin, a cryptocurrency expert, is not shocked by traders’ concern. He pointed out that investors often feel anxious when prices go below a significant psychological threshold, like $100,000, but he doesn’t see a cause to worry just yet.
It’s important to keep in mind that, despite the recent sell-off, bitcoin is only about 20% below its peak. A 20% decline is frequently just a chance to purchase because this is cryptocurrency, not the bond market.
Puckrin believes that during this cycle, the price of bitcoin may hit $150,000.
In order to explain his perspective on a possible recovery, Guillermo Fernandes, the founder of blockchain compliance firm Blockpliance, cited a well-known Wall Street proverb: the market takes the stairs up and the elevator down.
Fernandes believes that a bitcoin rebound is unavoidable, but he doesn’t see it happening quickly.
He said the rise will be slower following the elevator-drop incident in October. Due to the dominance of Wall Street money and institutional capital among major purchasers, intrinsic volatility has decreased to about 45%, converting parabolic pumps into progressive ones. Expect a higher price at year’s end due to Q4 seasonality, the Fed’s QT taper, and a $100K–$110K liquidity floor.
In the short run, Carlos Guzman, a researcher at cryptocurrency market maker GSR, is more cautious.
He said that he believes there will probably be more suffering in the cryptocurrency markets in the near future. The market is still processing the fallout from the October 10 disaster, and there remains residual weakness.
Guzman was alluding to the worst bitcoin liquidation event that occurred last month. However, he said that his general market view for the next six to twelve months is becoming more optimistic as cryptocurrency adoption picks up speed and monetary policy changes to favor riskier assets.
