Bitcoin
BTC$69 876.08

-0.73%

Ethereum
ETH$3 518.54

-1.51%

Tether
USDT$1.000185

0.03%

Binance Coin
BNB$606.51

2.75%

Solana
SOL$183.85

-1.84%

XRP
XRP$0.610516

-1.87%

The worst-case scenario for Bitcoin


07 Dec 2021

#Bitcoin

On Monday, along with rising risk appetite in global markets, buying interest in cryptocurrencies returned. The cryptocurrency fear and greed index added 9 points to 25 overnight. This is still an area of extreme fear, but recent dynamics of the largest coins indicate that this is now the moment for investors with increased risk appetite to enter. BTCUSD has added 4.9% in the last 24 hours, trading just above the $51K level.

The RSI on the daily candlestick charts has retreated from below 30 (oversold area). The price has found support from buyers at the important 200-day moving average. This is a strong signal for many participants that the whole market stays in a long-term bullish phase.

But so far, we see very cautious buying, which is creating doubts. A better signal would be a sharp move up, crossing this line, as in July and October this year and before that in April 2020. This is quite an optimistic scenario for bitcoin, where it gets sustained bullish support, preventing it from descending into an uncontrollable fall.

The pessimistic scenario for bitcoin, and the entire cryptocurrency market, assume a bullish/bearish sentiment tied to 4-year halving cycles. The previous two bear markets came in 2014 and 2018, giving speculators a good shake out of that train and leaving only the most resilient crypto enthusiasts. A sharp reversal to the downside after a dizzying rise came in late 2013 and 2017 and lasted about a year. This suggests a high risk of reversal at the end of 2021. From peak to bottom in 2013-2014, BTC lost more than 70%, and in 2017-2018 – 85%.

A repetition of these scales sets BTCUSD up for a pullback in the 10-20k range. In our view, even a decline to 20k - the highs of the previous cycle - looks like a very pessimistic scenario for now. But it may well materialise under a negative set of circumstances, though it is bound to attract the interest of long-term buyers. Bitcoin needs to pass several checkpoints before we seriously consider such a scenario. The first one is the 200-day moving average (currently at 48k). Confirmation we will get on the decline under $40K, the level of previous local lows.


Related

NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
Tips to Choose the Right Second Citizenship Program
Tips to Choose the Right Second Citizenship Program
Bitcoin’s continued slide down
Bitcoin’s continued slide down
A new round of crypto market mistrust
A new round of crypto market mistrust
Bitcoin holds its range, but pressure mounts
Bitcoin holds its range, but pressure mounts
Bitcoin unlikely to end correction
Bitcoin unlikely to end correction
Bitcoin looks set to take a severe dive
Bitcoin looks set to take a severe dive
Bitcoin set for a deeper correction
Bitcoin set for a deeper correction
Bitcoin falls under pressure
Bitcoin falls under pressure

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 75.2% 42 $69 876.08 -0.73% 5.59% $1 374 273 013 911 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 76.8% 50 $3 518.54 -1.51% 0.22% $422 473 613 366 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 93.2% 1 $1.000185 0.03% 0.01% $104 523 618 020 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 64% 81 $606.51 2.75% 3.96% $90 695 193 363 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 60.8% 88 $183.85 -1.84% 2.48% $81 702 403 548 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 83.6% 27 $0.610516 -1.87% -3.83% $33 507 724 771 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 90.4% 2 $0.999970 -0.02% -0.01% $32 490 169 862 USDC 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 68% 66 $0.209888 5.10% 28.84% $30 153 031 924 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 70.4% 66 $0.638195 -1.75% -0.36% $22 709 265 386 ADA 7 days price change
10 Avalanche (AVAX) AVAX Avalanche predictions 58.4% 87 $53.20 -2.95% -4.74% $20 079 936 302 AVAX 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 56.8% 94 $0.000030 -1.14% 8.76% $17 930 876 259 SHIB 7 days price change
12 Toncoin (TON) TON Toncoin predictions 60.4% 87 $4.78 -3.12% 7.52% $16 596 027 613 TON 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 73.2% 49 $9.37 -2.39% 0.76% $13 373 754 540 DOT 7 days price change
14 Bitcoin Cash (BCH) BCH Bitcoin Cash predictions 68.8% 58 $574.59 3.29% 38.32% $11 309 146 535 BCH 7 days price change
15 Chainlink (LINK) LINK Chainlink predictions 75.2% 42 $18.77 -3.67% 1.94% $11 018 453 562 LINK 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.