Prominent Analyst Gives Handful of Reasons Why Bitcoin Won’t Fall Under $2,000 BTC/USD
Bitcoin (BTC) has been in a bear trend all the last year. Since its all-time high, the digital asset lost more than 80% of its value. However, a few days ago, Bitcoin surpassed $5,000 and it remained traded above this level until now. Some investors are asking whether the digital asset is going to experience a correction or if it will keep growing in the near future. A cryptocurrency analyst believes that Bitcoin will not go below $2,000 in the future.
Bitcoin Will Not Fall Under $2,000
The Bitcoin and cryptocurrency analyst planB, wrote a tweet in which he shows that Bitcoin will not be dropping under $2,000. In order to arrive at such a conclusion, he said that miners have already capitulated and that difficulty is just 25% below the levels registered in November and December.
At the same time, Bitcoin never dropped below geometric mean, close to $2750. He has also added several graphics in which he shows Bitcoin miner capitulation, halving information, difficulty adjustment, and more.
Another thing he mentioned is that we are too close to the upcoming Bitcoin halving, which is expected to take place in 14 months. In this way, the new issuance of Bitcoin will be reduced from 12.5 BTC to 6.25 BTC, which is a 50% decrease of new mined Bitcoin. If there is increased demand, the price is expected to grow as well.
Why #bitcoin will not drop under $2k:
1) Miners already capitulated (difficulty -25% Nov/Dec)
2) Too close to the Halving (14 months)
3) BTC never dropped below geometric mean ($2750)
4) BTC never dropped below 50% of stock-to-flow model ($5500)
5) RSI bottomed at (42) now rising pic.twitter.com/qJyFvKQcLQ
— PlanB (@100trillionUSD) March 5, 2019
Nonetheless, there are other experts and traders that think that Bitcoin will be double bottoming in the future and that Bitcoin could fall under $2,000. Tony Vays, a former Wall Street analyst, believes that Bitcoin will reach $1,3000 in the worst-case scenario.
At the moment, the market has a very positive sentiment that could allow Bitcoin to keep growing in the near future. Bitcoin could eventually reach $6,000 and surpass $6,500, as Brian Kelly explained.
At the time of writing this article, Bitcoin is being traded around $5,200 and it has a market capitalization of $91.6 billion.