BTC Expected to Drop to $2,000 as the Year Ends
When it comes to cryptos, a few months time can mean a massive difference between a price going up or down. That concept is evident in the fact that Arthur Hayes’ predictions about BTC are fluctuating more than the price of BTC itself has.
Just recently, Hayes believed that BTC would be able to rise to $50,000 by the end of this year. But, what happened, in reality, is completely the opposite, so now he altered his prognostication. Hayes is saying that when considering the struggles encountered in the recent bull and bear markets that crypto has had to endure, BTC might just decrease to a value of $2,000 prior to the run up of another bull market. That statement "bears" weight coming from BitMEX’s Chief Executive Officer.
A Bear Struggle
Hayes, who is an ex-Citigroup trader, said that he predicted a complete downward spiral for BTC during the coming eighteen months, which isn’t really an optimistic view. With that, Hayes started comparing the current trend in the market with that of 2014 to 2015.
Most analysts and specialist who study the charts in the crypto market estimate a bear trend as soon as a crypto’s price is reduced below its normal range within the cycle. But Hayes sees it another way.
He predicts a bear market taking over when the crypto’s price reaches a value less than the 200 Day Moving Average. In his opinion, BTC reached its bear territory as soon as it decreased from just over $9,000.
Furthermore, Hayes observes, after studying other old charts for cryptos, that any prices of the cryptocurrencies that dropped more than their 200 DMA value actually continued to fall after that, sometimes dropping to an extremely low value. So, he sees BTC heading in that direction. He warns that it could even reach the $2,000/$3,000 mark before a bull market happens.
BTC Volatility Needed
When discussing the trend in recent prices for BTC in the market, Hayes says he sees that this fluctuating market is actually beneficial and necessary. BTC needs this volatility to stay visible and maintain its place within the crypto market.
Many analysts have had high hopes for BTC, with some even believing it will hit over $200,000 by the year’s end. Others, like Hayes, aren’t so sure.