Bitcoin (BTC) is struggling to hold on as it keeps slipping time and again. Market watchers are not too optimistic as they foresee the world’s most popular cryptocurrency falling to a new low of $40,000. Over the past week, BTC has gone below the $50,000 mark, and its just a matter of hours of twists and turns its going to take.
Last Sunday saw a short-term break in trend as bitcoin failed to return to the $53,000 mark and has been hanging well below that level. On CoinDesk, BTC was trading at $47,702 – down by 5.6%. Katie Stockton, Founder of Fairfield Strategies, believes that the support level for bitcoin at $44,000, will likely be breached and the secondary support level will be a pivotal area for investors to watch in recent trade.
The bitcoin price needs to be above $55,000 to have a foothold. But looking at the market and the hold of the new COVID-19 variant omicron on it, enthusiasts should not get too hopeful yet. Analysts, as per FXStreet, say that even after flipping the $57,845 level, bitcoin needs to go up to $61,000. It will then have to cross the $65,509 hurdle to an all-time high of $69,000.
However, investors are positive about bitcoin’s performance. Their outlook can be attributed to the 365-Market Value to Realized Value (MVRV) model, which has been reset and is currently at 1%.
Michael Saylor, CEO of MicroStrategy, believes bitcoin can go up forever with the main drivers being inflation and technology adoption. “It’s going to be driven by technology, as it gets built into Facebook, Google and Apple, it’s built into Square and PayPal. And so as you build in technical utility, that’s going to drive more adoption.”
About the risks posed by volatility, Saylor says it’s not going to go up uniformly in a perfect, exponential curve. “But I don’t think we’ll see a world where technology slows down, and I don’t think we are going to see a world where currencies don’t keep inflating.”