Bitcoin price might fall even lower, to $1K. This according to a new analysis written by Clem Chambers, a cryptocurrency investor. These are troubling news for the cryptocurrency market that has been constantly beaten off. Bitcoin has lost more than 80% of its value since lat January, and according to Clem, it will likely be worse.
Bitcoin Price Forecast Not Good.
An article published today by Forbes titled “Bitcoin May Not Have Found Its Bottom Yet”, forecasts that maybe this bear market has not finished yet. The well might be even deeper, according to Clem Chambers, and it could take bitcoin to unexpectedly low levels. According to his analysis, bitcoin has two new key levels on its way down: $2.5K and ultimately $1K.
To Clem, we are now in a stable but unstable situation. The $4K level serves as a noisy bottom with lots of uncertainty and volatility. This means that the market is gathering energy to jump to another more stable state. He declares:
“A tight range suggests market certainty, wide movements of volatility means uncertainty. The trouble with uncertainty is that it is most often a bearish signal because few want to commit to invest or speculate when they aren’t sure,”
corroborating that the market is more likely to keep going down than going up.
Bitcoin Hashrate Suffers
But there is another thing that is even more important that prices. Bitcoin Hashrate. If prices keep going down, not even difficulty adjustments will be able to keep mining activities profitable. This also could affect the operativity of the mining network to the point of blocking transactions from happening. He states:
“If the price fell too far below a commercial minable level then the bitcoin blockchain could stop. Imagine the price collapsing tomorrow and 2016 left blocks unmined until the next difficulty retarget. Say the price hit $1,000 and no one could mine profitably below $2,000.”
However, he is positive that this would not happen, and he thinks that while $2,5K is possible, these low levels are unlikely to happen for too long. Bitcoin, to him, is still a great buy and he personally thinks that this is a great opportunity to buy bitcoin at 2.5K.
I can’t imagine this level will hold for long but up to now I’ve expected things to happen faster than they have. I continue to pick up small lots of bitcoin and I’m still waiting to dive in at $2,500.