Bitcoin’s new ‘worst case scenario’ puts bottom of BTC bear market near $6K
Bitcoin (BTC) still risks a drop below $7,000 in this bear market, warns the latest worst-case prediction.
In its latest live stream on November 24, trading platform Decentrader revealed targets for a BTC price bottom.
Analyst flags “old school, stone-hard support” for Bitc
The latest in a series of BTC/USD forecasts, Decentrader co-founder Filbfilb mapped out a potential drop below $10,000 on the cards for the pair.
“In my worst-case scenario, I think that’s probably where we’ll end up, like old-school rock solid support,” he said of a bid zone around $6,500.
This is where buyers “would probably start to fill their bags,” he added, noting that this level was roughly double the 2018 bear market and March 2020 COVID-19 low.
Although “unlikely” under current circumstances, Filbfilb nevertheless argued that more significant consequences of the FTX implosion could remove bid support higher up the order book, opening the door to such a capitulation event.
“Until we have more information, it seems unlikely, and as I say, I think the fact that we haven’t dumped harder than we actually could have is a good sign for the bulls,” he continued.
Given recent events, as Cointelegraph reported, BTC/USD has actually managed to fall less compared to its previous all-time highs than during previous bear markets.
A related debate centers on whether a deeper dive is needed to match these lows and put an end to the current downtrend.
Filbfilb commented that for Bitcoin to make a bottom while avoiding the worst-case scenario, crypto needs to “dodge a few bullets” regarding FTX fallout, and macro markets also need to stay strong.
BTC price is navigating bear market pits
Elsewhere in the livestream, Decentrader co-founder Philip Swift, also the creator of the data resource LookIntoBitcoin, explained other recent chart phenomena.
Related: Will Bitcoin Hit $110K in 2023? 3 Reasons to be Bullish on BTC Now
Among them was the growing number of Bitcoin wallets that now contain at least 1 BTC, the number soon to pass one million for the first time.
This is a direct result of exchange withdrawals in light of FTX, Swift said.
Although it is 18 months away, the next Bitcoin block support halving event in 2024 will also be a major narrative focus going forward, he added.
This will in turn have “a positive effect on the price in terms of media coverage and anticipation of the next halving event”.
A comparative chart showed that BTC/USD is currently working through the lowest part of its four-year cycle, showing strong correlation with 2014 and 2018.
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