Lately, Bitcoin (BTC) has assumed a consistent bearish market trend, and analysts are skeptical of a recovery any time soon. Many of the renowned market analysts opine that the BTC price will continue dropping even lower or trade at $5,500 for months before recovery. Peter Brandt wrote on his Twitter on November 21 that his target for bitcoin is a $5,500 floor after the price went below the $6,850 support level on that day.
Many investors may be expecting a market reversal, but the bearish trend may last longer than expected. The crypto industry should be ready for a surprise as Tone Vays, an investor, believe the BTC price may get to as low as $4,500.
The current market trend has led to market volatility due to short term bullish that may suggest a reversal. The price has been dropping from one support level to the next in the past weeks. BTC traded at highs of $13,000 from where the price began dropping. In July, it traded below $9,500 and recently went below the $8,200 support level and has been dropping ever since. The market is expected to maintain at an average between $6,900 and $8,200 because the next lower support level is quite far and might take till January to reach there.
According to a recent report by Cointelegraph, Stock-to-Flow model predicts that BTC/USD will trade at an average of $8,300 till May 2020. From May next year, the market is expected to take a bullish trend, which is attributed to the Block Reward Halving event. The effects of the event on Bitcoin price are evident seven months before it actually happens. This event will trigger Bitcoin prices upward and might lead to the recovery of significant highs.
This week alone, BTC has dipped over 15%, and according to Willy Woo, an analyst, this is a sign that the markets are destined to move forward. Woo predicts more volatility due to low lows and low highs, which are considered bearish. He also doesn’t expect the price to get to past halvenings.
Investors should, however, expect a short-term reversal as the price tries to get back to the $8,200 resistance level. So far, bulls have only been achieved through short time frames of an hour or less, and traders are afraid of buying. If the $7,400 level is not breached soon, then bulls will be disappointed by more downward pressure.