Bitcoin’s price has been on a rollercoaster ride lately, and analysts are divided on whether the bottom is in or if it’s going to drop even further.
More Pain Ahead?
Altcoin Sherpa, a well-known crypto analyst, believes Bitcoin might not have hit its bottom yet. He thinks it could drop below $50,000 again, potentially reaching the $40,000 range. He predicts a few more rough weeks with more liquidations and price drops.
He expects Bitcoin’s price to stay within a range for the next few months, with some short-lived rallies in altcoins.
The Bottom is In?
Mikybull Crypto, another analyst, disagrees. He thinks Bitcoin has already hit its bottom and won’t fall below $50,000 again.
He uses the Elliot Wave Theory to support his argument, claiming that the current correction is ending and a new wave will push Bitcoin to at least $135,000 in the coming months.
He also points to several indicators that suggest a bottom, including:
- The volatility index (VIX) spike: This often signals a market bottom, similar to what happened in 2020.
- The Relative Strength Index (RSI): This indicator also suggests a bottom.
- The Bank of Japan’s rate hike pause:
This has eased pressure on the Japanese carry trade, which benefits Bitcoin. - Bitcoin’s funding rate: This is currently in negative territory, which usually leads to a short squeeze.
- Spot Bitcoin ETF trading volume: This is at a new high, indicating strong institutional interest.
- Whale accumulation: Institutional investors have been buying Bitcoin for the past 30 days, suggesting they are confident in its future.
What’s Next for Bitcoin?
Only time will tell which analyst is right. Bitcoin is currently trading around $56,800, up slightly in the last 24 hours.
While some investors are hesitant, many believe this could be a good opportunity to buy Bitcoin at a lower price. It’s important to do your own research and make informed decisions based on your risk tolerance and investment goals.
