Bitcoin: some bearish price predictions

Some bearish short term predictions on the price of bitcoin have started to circulate for a few days.

One of them is from FXStreet’s Tanya Abrosimova, according to whom the price of bitcoin at this point could possibly quickly collapse to $24,000, as there are no significant barriers below $26,500. 

The fact is that $26,500 is precisely the area around which it is oscillating today, while in recent days the support of $26,000 has also already been tested, holding twice, and in both cases, it was followed by a rebound. 

Abrosimova points out that bitcoin has retreated from the all-time highs recorded on Sunday, but is still in a green zone on both a daily and weekly basis. 

She writes: 

“Bitcoin has been on a roller-coaster since Sunday. The coin hit a new record high at $28,250 and crashed to $25,700 in a matter of hours amid massive profit-taking. By the time of writing, BTC has recovered to $27,000; it is still vulnerable to the sell-off”.

Indeed Bitcoin would have completed this short correction cycle, but it would need a sustainable move above $27,000 to resume growth. 

Failure to do so could trigger new sell-offs that could take the price down to $25,500 or $24,000. 

However, Abrosimova also speculates that in case of a new breach of $28,000, and the achievement of a new all-time high, the next resistance would be at $30,000. 

She adds that it appears that in these days more than 8,200 addresses have bought about 54,000 BTC in a price range between $25,700 and $26,500, so if this area is broken the selling pressure is expected to increase, bringing the price quickly to $24,000. 

These scenarios are actually more or less shared by other analysts, with the hypothesis of $24,000 being relatively recurrent, as a support in case the $26,000 area is broken. 

On the other hand, the greed and fear index has been at excessively high euphoria values for a long time now, which leads many to believe that a retracement could be just around the corner. 

Bitcoin, Roubini’s price prediction

However, there are also those who are much more pessimistic, such as Nouriel Roubini who says: 

“We’re close to the point where the hyperbolic bubble is going to go bust”. 

To be fair, Roubini has been arguing for years that Bitcoin is just a bubble ready to burst, and so far he has always been contradicted by the facts.