BTC price can fall from 40% to 50% before a turnaround
Bitcoin price is under a lot of pressure as it tumbling week after week. Macroeconomic and geopolitical issues not only affect crypto price action but also negatively impact global markets. Furthermore, BTC’s image gets worse as ESG is boosted and more green assets are growing exponentially. It is difficult for institutions, hedge funds, and pension funds to maintain part of their budget in Bitcoin because its mining is not environmentally friendly. The massive carbon emissions from mining have created a systemic problem for BTC prices in the long run as to when it becomes more sustainable.
As a result, there are a lot of factors holding the price back, which means more drops are expected. At one point, the price will reach the fair value to enter the bull. Observing the chart, this zone can be identified from the end of 2020, between $16,020 and $19,036. That is the ideal distribution for the bulls to take control of the bears. By then, Bitcoin investors may have found a “greener” solution to mining, erasing the negative image that is preventing investor sentiment in the cryptocurrency.
Of course, prices always have the potential to rebound soon because investors have their own pick on several geopolitical themes. In particular, a piece of news can easily trigger a strong rally that breaks these downward pressures. For such an upbeat move, the price needs to have a weekly back above $30,000, preferably above $32,650, which would open the way for a recovery to $36,709. Since then, $40,000 wouldn’t be a far-fetched target, with $40,750 being the silver lining on the upside, marking a 40% turnaround.
Disclaimer: This article is for reference purposes only, not investment advice.
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