Bitcoin’s price may have dwindled within the past year, but this may not be the last of its kind. According to Robert Sluymer, Fundstrat Global Advisors strategist, Bitcoin and altcoins may be at the risk of breaking to new lows after a technical analysis was carried out, reports Bloomberg on January 7.
Small Altcoins Have Been Most Impacted by Bitcoin’s Price Dump
Per the report, Robert Sluymer revealed that Bitcoin may have been on the decline but cryptocurrencies that have been most impacted are small altcoins. These coins are more vulnerable to a decrement in price, Sluymer stated. Generally, Sluymer believes that cryptocurrencies are “on track to retest their fourth-quarter lows in a weak technical position.”
The Analyst is also of the opinion that if Bitcoin hits the $4,300 mark, then it will be a signal that the digital asset is improving. However, a fall in price lower than that of the fourth-quarter lows of $3,100 could mean that it will decline further to $2,270.
The price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows
Tom Lee Predicts Bitcoin Will Hit $125,000 by 2022
Tom Lee, Fundstrat Global Advisors co-founder in January predicted that Bitcoin will hit $125,000 by 2022. However, weeks later, he made his forecast a bit precise by stating that within five months, Bitcoin’s price will be valued above $19,000. In an interview with Fox Business Network on January 25, Lee also said Bitcoin is resilient and his 2018’s prediction of the coin hitting $25,000 will still happen.
BTCNN on February 7 informed of Nikolaos Panigirtzoglou, a JP Morgan analyst’s opinion that Bitcoin can still make a major comeback. The analyst who was once bearish about the asset, stating that large investors have stirred away, had something different to say. According to him, the crypto market has gone through its bubble and burst stage which will lead to the next stage of adoption by institutional investors.
Bitcoin Records Over 80 Percent Loss in Value
Bitcoin, on the other hand, was trading around $20,000 in December 2017 before it dumped significantly to around $3,400 as at press time. Therefore, this is over an 80 percent decrement in price which has also affected the market capitalization of virtual currencies.
On January 7, the digital currency reached a milestone of $4,000 for the first time since the year began. Asides that, JPMorgan Chase & Co. has pointed out that the cost of mining one Bitcoin is $4,060 globally which is higher than its current price.