“What goes up must come down,” said renowned English mathematician and physicist Issac Netwon.
And that continues to be true in case of the world’s most traded cryptocurrency, bitcoin.
Bitcoin could drop to lower levels as we head into a quantitative tightening and a potential raise in interest rates in March, a prominent crypto analyst warned.
“Worst case, obviously would be bearish, meaning we could be at lower prices. And we already did go to lower prices, we went down to $33000 earlier this quarter,” said crypto analyst Benjamin Cowen in a Youtube video to his 712,000 subscribers.
“My general outlook for Q1 is bearish for bitcoin, or neutral at best. The best case scenario that I can imagine would be bitcoin closing Q1 at around $46,000,” he added.
Bitcoin traded at $46,055 at the beginning of the first quarter on Jan. 3, according to data from MarketWatch.
Right now, bitcoin is down to the $40,000 mark again, a first in the past two weeks.
Bitcoin is trading near $40,511.50 on Friday according to CoinGecko, a price-tracking website for crypto assets. Bitcoin’s price is down 4.2% in the last 24 hours.
Bitcoin fell below $33,000 in January for the first time since July. Its price fell more than 50% in a broader market selloff.
Bitcoin, which has been classified as a volatile asset class, is expected to touch a much more bullish target of $200,000 in the second half, despite its turbulent start to 2022, stock research and market forecasts company FSInsight, operated by Fundstrat Global Advisors said.
“I see quantitative tightening, a lot of economic uncertainty, we see the dollar still above its own bull market support band, we see bitcoin below its bull market support band. I cannot look at those conditions and say that this is the best scenarios for alt coins.
Altcoins remain risky for as long as bitcoin remains below its support band, Cowen cautioned.
“Altcoins do the best when bitcoin is going sideways above its bull market support band,” he said.
Last summer, altcoins did not accomplish a whole lot
until bitcoin had the impulsive move to get back above its bull market sport band, pointed Cowen.
“So remember alt coins did not have a crazy rally until after that came,” Cowen added for the benefit of potential buyers of other cryptocurrencies.
FSInsight, operated by Fundstrat Global Advisors said, is expected to touch $200,000 in the second half, of the year.
In a note, the company said bitcoin has mirrored the stock market in its performance, when encountered with the likelihood that the Federal Reserve could raise interest rates as early as next month.
“Bitcoin became increasingly correlated with equities toward the end of the fourth quarter of last year and fell when faced with the prospect of central bank tightening,” FSInsight’s Head of Digital Asset Strategy Sean Farrell wrote in a note, as reported by Coindesk.
Rising interest rates, inflation, and market volatility are on the horizon. You don’t want to miss out on this exclusive opportunity to unlock Action Alerts PLUS at our lowest price of the year.
Source: https://www.thestreet.com/investing/bitcoin/bitcoin-will-continue-to-fall-in-march-to-low-levels?puc=yahoo&cm_ven=YAHOO&yptr=yahoo