Cryptocurrency prices recoiled this week as longs liquidations coincided with rising fears of a recession and profit-taking. Bitcoin price dropped from this month’s high of $31,000 to ~$28,200. The same is true for other altcoins like Ethereum, Cardano, Injective, Zilliqa, and Safemoon.
Analysts are bullish on Bitcoin
Despite the recent pullback, some analysts are still bullish on Bitcoin. On Thursday, analysts wrote that we are in a new wave of a bullish cycle that could push crypto prices much higher in the coming months.
They noted that the collapse of FTX helped the industry by getting rid of highly speculative leveraged positions. The analysts also noted that Bitcoin was building its credentials as a safe haven as banks remain under pressure. It said:
“Any potential dislocation, whether on the bank’s credit side, or on the sovereign side positions bitcoin perfectly as a safe-haven asset alongside gold.”
Meanwhile, Changpeng Zhao, the founder of Binance, brought another angle in his crypto price prediction. He argued that Bitcoin price could surge in the next 12 months as investors wait for the upcoming halving.
His argument was that Bitcoin has always surged before halving, which is a process that reduces the award size to miners. Bitcoin was trading at $12 when the first halving happened in 2012 and was at $658 when the second one happened in 2012. Further, BTC was $8,800 when the last one happened. Therefore, if this trend continues, he argued that the coin could be substantially higher.
Analyst predicts a 40% Bitcoin price jump
Meanwhile, a crypto analyst has predicted that Bitcoin price will rise to $40,000, which is a 40% increase from where it is today. Kaleo has accurately predicted some key Bitcoin moves in the past.
Therefore, if his current forecast works out, it means that Bitcoin’s market cap will jump to more than $1.1 trillion, a $331 billion increase from where it is today. If this prediction works, it also means that other altcoins like Ethereum, Cardano, Polkadot, and Solana will also jump since cryptocurrencies have a close correlation.
Another analyst, Mark Harvey, made the bullish case by pointing that BTC was the only significant proof-of-work coins in the industry and that its supply was falling. 92% of the 21 million Bitcoin has already been mined. He said:
“Everyone needs Bitcoin whether they know it yet or not, because it’s the strongest form of property a person can own. Eventually, everyone will catch on to this. I estimate that than 1% of people truly understand Bitcoin and are buying as much of the supply as they possibly can, holding, and not selling at any price.”
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