In a recent post on Biotech Valley insights, analysts predicted that Bitcoin will fall 50% from its 65K top in the last three weeks. During the upcoming weeks, their next target price for Bitcoin is 15K-20K. The party is certainly over, and investors should consider selling or shorting Bitcoin-related assets. Bitcoin’s unusual triggers have run out, and it is now being targeted by governments all over the world. There is nothing that can keep it from crashing more at this time according to the analysts.
The analysts had previously highlighted Bitcoin’s weaknesses as a leading digital currency.
The reasons being :
- Transaction cost.
- Transaction speed
- Energy intensive nature.
- Extended volatility
The recent collapse illustrates that Bitcoin is a speculative token that may fall down 50% in a week, not a safe haven, store of value, or hedge against inflation/market correction. Bitcoin’s unusual catalysts have run out, and it’s facing a coordinated regulatory campaign from governments all over the world. “At this point, I don’t believe there is anything that can keep it from dropping even further,” the analyst report continues.
Bitcoin’s downward spiral, according to Biotechvalley Insights’ analyst, will take longer than most predict. The analyst’s goal price for Bitcoin is $15,000–$16,000, but he adds, “At this point, the million-dollar question would be, are we out of the woods?” The article by the biotech consulting group researcher emphasizes:
“I believe Bitcoin has a long way to fall from here. I think it will slowly grind down the slope of hope with a periodic dead cat bounce. As the technology is severely damaged, it is better to be the first one to sell into the bubble before the whole ship sinks”
What is the required Game plan?
The analyst’s strategy is to short bitcoin (BTC) “till US$31k, liquidate 30-50 percent of the position to cover the cost basis and continue shorting with the house’s money,” according to the analyst. According to the analyst, there will be significant resistance in this range, but once it breaks down, resistance around $19-20kis likely.
On May 26, cryptocurrency prices had recovered and were trading with modest gains. Bitcoin, which accounts for around 43% of the worldwide crypto market capitalization, was trading at $38063 at the time of writing.