Crypto Expert Talks About “Crypto Winter” After BTC Reaches $ 300,000
Despite forecasts that the price of Bitcoin in the current bull market will rise to $ 300,000, the founder of BTCC Exchange, Bobby Lee, believes that the digital currency markets can retreat for years after they reach their peak.
Will there be a crypto-winter?
According to Lee, given that the price of Bitcoin will be around $ 30,000 this year, even just a “tenfold value” will raise the price of the cryptocurrency to $ 300K. However, he noted that he is not sure if history will repeat itself.
According to the expert, once Bitcoin reaches a peak — whether it’s $ 100, $ 200, or $ 300,000-people should be aware that it could lose 80 to 90% of its market value from its historical high.
In the crypto industry, analysts call the weakening “crypto-winter”, and it can last from two to three years. “The collapse will happen when people least expect it,” said Ran Neuner, CEO of blockchain investment fund Onchain Capital.
The cue ball is experiencing a strong 2021, when the cryptocurrency surpassed several record levels and the $ 60K mark earlier this month. Bitcoin is up nearly 800% since March last year, after falling when the COVID-19 pandemic hit the global economy.
Bitcoin supporters say that the world’s largest digital asset in terms of value will continue its impressive growth as institutional investors become more involved. “People no longer invest only for speculative purposes. They buy it because they see the value of Bitcoin, “ said Dan Held, director of development at cryptocurrency exchange Kraken.
Meanwhile, critics say Bitcoin’s volatility indicates that its institutional adoption will be limited. Many argue that it is in a bubble, already caused by huge amounts of stimulus, and ready for a price collapse like after 2017, when the Cue Ball fell below $ 4,000 from $ 20 in just a year.
BTC dropped to support level
The BTC price declined significantly on March 24, reaching the support zone of $ 52,500.
Bitcoin is expected to bounce back to either the current level or the $ 50,250 support. In addition, we see that the current drop is a perfect repeat of the highs seen between February 25 and March 3.
At least in the short term, a rebound is expected. Since Bitcoin is also trading at long-term support, this could escalate into a longer-term move.
A closer look shows that Bitcoin is trading inside a parallel descending channel. This pattern often contains a corrective movement. Therefore, upon completion, you can expect a breakout from the channel.
However, the exact slope of the channel is not clear. BTC is either on the support line of the channel, or is approaching it. The support line is around $ 50,250. Both scenarios seem possible, as $ 50,250 is also a strong support level.
Since BTC is also trading on a horizontal level and there are many divergences, it is more likely that Bitcoin has reached a low and will bounce back from there.
It is likely that Bitcoin has already reached a low and will now move up. In a bearish scenario, BTC could fall to $ 50,250 before recovering.
At the time of writing, BTC was trading at $ 52,859. Lee’s forecast for the so-called crypto winter suggests a 90% drop in value compared to any peak value. In any case, according to other crypto experts, the ongoing decline does not look like the beginning of a bearish momentum.