Bitcoin celebrated its 13th Birthday with a drop in price. Legendary Satoshi Nakamoto mined the Genesis Block on January 3, 2009.
Bitcoin plunged below $46K for the first time since late September 2021. But technical analysts see a growth-friendly pattern on the chart. BTC has been declining almost unceasingly since hitting its all-time high (ATH) on Nov 10 at around $69K. For two months, analysts have been announcing that this decline is a correction and does not mean a trend reversal. Meanwhile, it was noted that trading volumes are falling, and BTC stocks at exchanges are minimal.
Experts assumed that growth will be continued after the decline in bitcoin by 30% from ATH, that is, after falling to $48.3K. However, bitcoin dropped even lower, and new forecasts have appeared that look more pessimistic. In this case, analysts refer to both fundamental factors and technical analysis.
A supporter of technical analysis, popular trader Tone Vays predicted a significant correction in BTC back in mid-December, assuming that its price could drop to $20K. At the same time, the expert stated that this would not be a trend reversal and would be a good opportunity for market players to buy low. Now Tone Vays has repeated his prediction. In his opinion, after bitcoin has broken down the $47K level, it may continue to drop. But a bounce can happen from any support level, as the rising triangle pattern is clearly visible on the BTC chart. This pattern is considered a bullish signal in technical analysis.
Tone Vays states that bitcoin could resume its rally to $100K if the bounce leads to breaking up the important resistance level of $69K, which is also an all-time high. But the closest resistance level is $52K.
Altcoin proponents believe that bitcoin’s growth in 2022 will be less than that of other leading coins. Already, Bitcoin Dominance has dropped below 40%, and Ethereum’s (ETH) market share has risen above 20%. John Wu, president of Ava Labs that develops Avalanche (AVAX) smart contract platform, believes the cryptocurrency market will double in 2022 to $5 trillion. But the share of bitcoin will drop to 30%. The expert states:
– Bitcoin will probably lose more dominance even though it’s going to grow nicely. It’ll go probably to 30% dominance from 40% right now and if it’s a $5 trillion for the industry, that’s roughly a $75,000 price target.