Hold Your Horses: Bitcoin Could Fall Back To Under $38,000, These Analysts Say

Christian Encila

1 year ago

3 mins read

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Over the past 24 hours, the cryptocurrency market has witnessed Bitcoin consolidating its position in the digital financial space.

Amidst a wider cryptocurrency selloff, Bitcoin offered yet another example of its infamous volatility, plunging sharply toward the $40,000 region.

The leading cryptocurrency saw an 8% decline to $41,900 before reversing part of the losses and opening Monday’s trading 5% down at $42,090.

Bitcoin Momentum Could Lose Steam

CoinGecko’s price updates show that Bitcoin has only shown slight variations over this period, indicating that it is in an equilibrium phase after its recent price spikes.

The subtle fluctuations in the price of Bitcoin indicate not just a break but also a chance for market players to evaluate the situation as it stands.

The well-known cryptocurrency trader Josh Olszewicz, who goes by the handle CarpeNoctom on X, completed an empirical study that suggests there is a considerable chance that Bitcoin (BTC) could collapse and possibly drop below the $38,000 mark.

$BTC

bear case = 35.7k (daily Kijun)

SL on longs prob prudent around 42.8k pic.twitter.com/NqyLsJS9Nq

— Josh Olszewicz (@CarpeNoctom) December 10, 2023

Based on his analysis of the daily Kijun line—a pivotal technical signal in the world of cryptocurrency trading—Olszewicz maintains a gloomy outlook.

A crucial medium-term trend indication in cryptocurrency trading is the Kijun Line, which is a component of the Ichimoku Cloud indicator.

Averaging the highest high and lowest low across 26 periods, it helps traders determine levels of support and resistance as well as the general direction of the trend.

Bitcoin slightly below the $42K level today. Chart: TradingView.com

Prices may suggest a bullish or bearish trend depending on whether they are above or below the Kijun Line.

When Goichi Hosoda created the Ichimoku Cloud in the late 1930s, the Kijun Line was one of the main components.

Share this chart with your financial advisors (and the disclosures below).

Based on your risk tolerance and investment objectives, the addition of #Bitcoin, even in small increments like 0.5%, 1.5%, 2.5%, and 3%, has the potential to alter the dynamics of the traditional 60/40… pic.twitter.com/mfLFsmD4LK

— VanEck (@vaneck_us) December 10, 2023

Meanwhile, prominent asset management company VanEck has emphasized that Bitcoin’s (BTC) historical performance does not guarantee future outcomes.

Dark Road Ahead?

This word of caution is important because VanEck is investigating the possible effects of adding Bitcoin to conventional portfolios, which puts the typical 60/40 investment approach to the test.

Justin Bennett, another cryptocurrency trader and analyst, is issuing an alert that Bitcoin (BTC) might revers its upward trajectory following another surge.

Share this chart with your financial advisors (and the disclosures below).

Based on your risk tolerance and investment objectives, the addition of #Bitcoin, even in small increments like 0.5%, 1.5%, 2.5%, and 3%, has the potential to alter the dynamics of the traditional 60/40… pic.twitter.com/mfLFsmD4LK

— VanEck (@vaneck_us) December 10, 2023

Bennett informs his 110,600 X social media followers that Bitcoin may rise one more time before making a correction.

The analyst provides a chart demonstrating how, on the daily chart, Bitcoin is presently trading inside a sizable ascending channel, with the pattern’s horizontal resistance located at roughly $48,000.

Based on the trader’s chart, it appears that he believes that after reaching his upside target, Bitcoin will drop below $38,000.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Pixabay

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.