Massive Bitcoin Crash! BTC Price to Drop Heavily If This Historical Scenario Repeats
Bitcoin (BTC) recorded its worst-performing year on record in 2018. The asset closed at a more than 70 percent lower price than its yearly open. Considering price action and network value, 2018 was a historically bad year for bitcoin.
In an interview with Kitco News, crypto analyst Aaron Arnold claimed that the Bitcoin (BTC) Price seems to be showing similar market sentiments as of the 2018-19 bear cycle market.
As per the analyst, BTC price is hovering in a price range of $19,000 to $20,000. This is very similar to the 2018-19 trend when it was consolidating near $6,000.
Back in 2018 when traders and investors believed that bitcoin’s bottom was in, the flagship currency continued to drop more than 50%. Aaron highlighted that the risk of a similar scenario repeating is possible. Thus, he predicts Bitcoin price is likely to plunge to the $11,000 to $14,00 level or even drop to $6,000 in a worst-case scenario.
The analyst sees a number of factors hinting at a price drop. The factors include high inflation, dollar devaluation, sovereign debt crisis, OPEC oil production cuts, and also the fact that BTC is still highly correlated with stocks.
Trading Volumes Give Hope for a Sustained Market
However, on other hand, Trading firm Cumberland shared a report mentioning that the market is still healthy despite the price crash with daily trading volumes of over $50 billion.
As per a report, Bitcoin price could also be showing signs of decoupling with the stock market.Source