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Bitcoin: some bearish price predictions
Bitcoin: some bearish price predictions
Bitcoin

Bitcoin: some bearish price predictions

By Marco Cavicchioli - 29 Dec 2020

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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.

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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