Good price corrections are usually part of the bull market. With one such decline currently ongoing, Celsius CEO Alex Mashinsky thinks that $16,000 might be on the cards.
“I have been predicting that Bitcoin and many altcoins will hit new all-time highs during 2021 and beyond,” Mashinsky said. “Still, we will see several corrections, like what is going on today, that will allow savvy investors to accumulate these assets at a discount.”
Since Bitcoin broke its record high of 2017 in December 2020, the currency started to climb in parabolic fashion, more than doubling its one-time high of $19,892 less than two months later.
Bitcoin nearly hit $42,000 on Jan. 8 before starting its latest decline, keeping a valuation close to $32,700 at the time of publication. From its all-time peak of nearly $42,000 to its latest low, Bitcoin has only corrected about 28 percent in volume.
“I see Bitcoin prices plunging even further than 25%. Sooner or later, the bears will accumulate enough pressure to see a correction. Overall I see the potential for bitcoin prices to fall all the way back to $16,000 before the end of the first quarter.”
Bitcoin’s price has skyrocketed with lightning-like pace in recent weeks. Although bull markets often involve price drawbacks, what are some of the signs that could occur when this price correction is over? “Without this drop and many more to come, we will continue to say the same thing since 2017,” Mashinsky said, adding:
“There is nothing better than HODLing your BTC and earning yield on it because very few investments delivered the returns of Bitcoin over 1,3 & 5 years. This process will flush the weak hands and transfer the baton with all their BTC from the short-term speculators to the long-term institutions and HODLers.”
Bitcoin’s bull run is also consistent with a variety of other economic indicators, including money printing and potential inflation.
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