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Analyst says Bitcoin might hit this old ‘peak’ again very soon

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28
Feb

Stifel’s Barry Bannister recently predicted that Bitcoin could plunge by 76% to $10,000 by 2023. Agreeing with the headwinds that Bitcoin faces in terms of monetary outlook, Gareth Soloway, President and CFO of InTheMoneyStocks.com, is also placing his high-end target for Bitcoin at $20K. During a recent podcast, he added,

“Bitcoin kind of is a risk on assets so it’s treated like a tech stock, so very likely you will see further downside, I’ll start nibbling on a longer-term entry for Bitcoin when it gets to 20K and then I’ll just kind of keep buying all the way down. “

At press time, Bitcoin was well under the important psychological level of $40,000. On 26 February as well, Bitcoin was unable to sustain its recovery after briefly breaching the level amid the ongoing market risks.

What does the RSI say?

Looking at the 14-day Relative Strength Index (RSI) to understand Bitcoin’s momentum, one can figure out a lot of things. Interestingly, the RSI was at its lowest point on 21 February on the daily chart. It has largely maintained the 45-level since.

Consequently, Bitcoin assumed a bearish trend. This essentially means that the likelihood of Bitcoin remaining in the oversold territory is looking higher in the near term.

Meanwhile, amidst the Ukraine-Russia conflict, the market seems to be in a state of fear. In fact, some investors have been giving in to panic-selling. Even so, long-term players have full faith in the king coin.

ATR indicator

Having said that, the Average True Range (ATR) indicator continues to show high volatility in the asset’s movement. In light of that, Soloway also predicted that Bitcoin reaching its previously projected $100K level is unlikely unless “monetary supply all of a sudden starts to increase.”

Bitcoin, for instance, formed a head and shoulder pattern on its technical charts on 18 February. In this context, Soloway noted that if BTC breaks its resistance, an upside potential of $50,000 to $52,000 can be expected in the short term. On the contrary, the support will stand close to the $27,000 to $29,000 range.

“I do think you can get down to the previous all-time highs back in 2017 which is right around that 20,000 level.”

At the time of writing, BTC was changing hands at $37,878 after losing its value by 2.27% over the last 24 hours.

admin