$100k to $40k – A fortnight away from 2022, the tables are still turning for Bitcoin
What goes up must come down; that’s the rule of the investing game. There’s always the threat of a market correction. Investors need to be savvy about timing their purchases and sales. Well, cryptocurrency is no different. In fact, it’s a much more volatile asset than traditional stocks and even more exemplary of the saying.
Curiously, there’s nervous chatter about Crypto Winter 2021, in the market. The interesting question here is, could we be staring at the face of such a market crash?
As of 13 December, the prime cryptocurrency, BTC has spent around 100 days in the 40K range.
Now, the king coin might spend a few more days in the 40k range. Given that the flagship token has consolidated within the said range for a while now. At the time of writing, it was trading at $48,883, up by 0.96%. On-chain analysis outlet, Whalemap pinpointed the $40,000 level as an area to watch closely.
From $100k to now $40k- Still a buying opportunity?
Well, Bitcoin predictions are here again with only a fortnight left for the year to end. Crypto exchange Kraken’s CEO Jesse Powell, in a recent interview with Bloomberg TV, expressed his “altered” narrative.
He said that there is a possibility of Bitcoin going down to $42,000, even below the $40k mark. However, Powell is confident that the market will bounce back from a bear market. This could be a possible outcome once investors start buying the dip.
“I think a lot of people see anything under $40,000 as a buying opportunity. I was personally buying when we dipped back close to $30,000 a few months ago and I think a lot of people are just waiting to come back in at rock bottom prices.”
Ergo, Powell laid out a scenario of a ‘crypto winter.’
Well, now consider this paradigm shift. In August, the CEO predicted that Bitcoin would trade “$100,000 plus a coin” late this year or early next year. Well, one might question, does the prediction still stand?
In this regard, Powell stated, “It’s hard to know where it goes.” However, he also added his bullish stance to nullify or rather inject some certainty amidst grim circumstances.
“When you look at a long-term trendline of Bitcoin and it’s just up consistently. I always tell people, If you think about buying Bitcoin, think about it as a five-year plus investment.”
Well, BTC to $100K was one of the most talked-about aspects within the crypto space. Several prominent crypto-figures and analysts including PlanB, Anthony Pompliano, Anthony Scaramucci, had put forth their supporting opinions.
Now, As 2022 draws closer, some cryptocurrency investment experts are doubtful about whether Bitcoin has enough time to hit $100,000 in 2021. According to Bitwise chief investment officer Matt Hougan,
“Bitcoin at $100,000 by the end of the year is a difficult prediction to make. […] I think $100,000 could be a target in 2022 but this year, I’m not so sure.”
Others in the crypto community have taken a more skeptical view. As covered before, Bitcoin hitting the $40k mark is now a real possibility. Therefore, one can opt for two paths – either buy the dip and HODL or take short positions, because the possibility of BTC falling further in the coming days, cannot be denied.