Gareth Soloway, a chief market analyst at InTheMoneyStocks.com, has stated that Bitcoin is due for a further drop below $20,000 while displaying indications of recovery above that level.
Soloway said in an interview with Kitco News that the next probable downside price target for Bitcoin would be $12,000, but that a further down to $10,000 is possible based on past tendencies.
According to the analyst, Bitcoin’s earlier ascent to its all-time high might also be replicated on the downside. He emphasised that the present context of rising inflation and interest rate rises makes negative projections for cryptocurrencies difficult. “It is critical to identify that it is quite likely we will go below $10,000…>.”
You would prefer that the about $3,500 lows from 2018 and 2019 be not removed. Aside from that, this new, unusual situation for crypto, due to the Fed and what they’re doing, and the fact that they’re taking money out and sucking it out of the system, maybe a very bumpy ride,” he warned.
Bitcoin’s new low point
Soloway observed that if Bitcoin’s price remains over $20,000, it will attract more bulls, which would propel it to a new all-time high. According to the expert, maintaining the price over $20,000 would likely indicate Bitcoin’s new market bottom.
However, he denied the possibility that Bitcoin may return to zero, emphasising that the token’s long-term prospects are favourable and saying that the next six months would be difficult.
Soloway estimated that it would take at least two years for Bitcoin to reach $65,000 following months of sideways trade. He said that if inflation moderates, the Federal Reserve would likely issue more money in response, which will benefit Bitcoin.
“If the economy is struggling and you have a systemic bear market for an extended time, that’s awful for equities, but it would be a positive situation for Bitcoin because the printing presses would restart,” said Soloway.