Crypto bulls might be spooked by crypto market uncertainty

Since yesterday, technical analysis for bitcoin has not changed but it has become somehow clearer. The sideways movement in the range of 53.980,47 – 57.513,35, marked with blue dotted lines, was confirmed. Now the price is recovering. There are also signals for growth.

The sideways movement, especially after such a strong collapse by 14% at the weekend, indicates uncertainty in the market. BTC may break out of the sideways correction with a sharp movement. However, whether it will be an upward or a downward one is unknown.

Judging by technical analysis, the medium-term trading corridor for BTC/USD is within the $50, 000 - $60,000 per coin. Therefore, the medium-term forecast presented yesterday remains relevant. If the pair consolidates below the support level of 53.980,47, bitcoin may fall to $50,000 per coin. If the resistance level of 57513.35 is broken and the price consolidates above it, there will be a chance of recovery to at least $60,000 per coin.

Let us study the opinions of authoritative experts. Notably, even those who are bullish in the long term are starting to worry.

According to Global Chief Investment Officer of Guggenheim Partners and Chairman of Guggenheim Investments, Scott Minerd, the world's largest cryptocurrency has run too far, too fast. At the same time, in the medium term, he is quite optimistic about the prospect of bitcoin. "Given the massive move we've had in bitcoin over the short run, things are very frothy, and I think we're going to have to have a major correction in bitcoin," he noted.

"I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about bitcoin is we've seen these kinds of declines before. It's part of the normal evolution in what is a longer-term bull market, with bitcoin prices eventually reaching between $400,000 to $600,000 per unit," Scott Minerd outlined.

Last year, when bitcoin hit its historical high of $20,000, Miner first shared his long-range price target for bitcoin, citing its inherent scarcity - only 21 million bitcoins will ever be created.

The rise of bitcoin and its possible considerable correction are now of high interest to those who have previously bought cryptocurrency. Longtime value investor Bill Miller, who has owned bitcoin for many years, said in an interview with CNBC on Tuesday that the number one cryptocurrency is in a bubble. The situation is similar to what it was in 2017. "Bitcoin saw its price soar in 2017, reaching what was then a record high of nearly $20,000 that December. It went on to fall sharply in the following months, losing about 80% of its value in what's become known as the "crypto winter," Miller said.

"Supply [of bitcoin] is growing 2% a year and demand is growing faster. That's all you really need to know, and that means it's going higher," Miller stressed. "Even back then during the bubble, it went down 20% on five different occasions so with bitcoin, volatility is the price you pay for performance," he pinpointed.

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The material has been provided by InstaForex Company - www.instaforex.com

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