Bitcoin has set the bar of progress and potential for all cryptocurrencies. However, for the past week, the flagship currency has been on a downward spiral. The shine in the eyes of the bears has started to show a hunting gleam that has been circling the bulls for a long time. As per the opinion of a majority of financial analysts, a bull market is not to be expected for some time.
The signs of waning are wafting from the current slow but steady bearish momentum. Bitcoin Hodlers have been enthusiastic about a six-figure jump of the digital asset in the upcoming months. However, retail investors have started to tap out in big numbers. As the coin is devaluating, a significant amount of reduction can be seen in wallets with a balance of 1K or more coins.
Are BTC Whales Going back to the Bottom of the Sea?
One of the main reasons behind the price spikes of BTC was the shortage of supply. The Bitcoin market bubbles have started to pop one by one as the retail and individual investors seem to be tapping out of the market. Back in 2020, a few analysts expressed their opinion about the price of BTC reaching the $100,000 mark by the second or third fiscal quarter of 2021.
This widely cited prediction model for the BTC points towards the halving. Halving is said to occur when the supply has been diminished by half due to constant investment in the flagship cryptocurrency. The prediction came true as BTC witnessed a massive inflow of retail investors from last year to this year. On the other hand, a huge influx of institutional and corporate investors set off a parabolic advance. Thus far, whales are not showing their cards at the table.
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Is Bitcoin Travelling Back to 2019?
A general impression among bears is found about BTC that it could demonstrate the same behavior like 2018 or 2014. Crypto capital advisor Timothy Peterson thinks that a 40-day reduction in absolute and percentage terms combined with retail liquidations in large addresses could result in a fall of up to 60% or higher. The reversal of this sharp downward incline movement can be reversed with a swift crash back down.
Peterson thinks that the flagship currency is looking at a correction of $25,000. He attributes this decline to the Metcalfe value of BTC, which is around $15 K to $33 K. This value is only 10% lower than the graph readings in late 2019 to early 2020. During that period, BTC traveled from $13,800 to $3800. However, the presence of Whales could signal a growth trend soon enough. Institutional investors are unlikely to allow price fall further lower.