Despite clear sentiment changes following this week’s price drop, analysts believe Bitcoin would ultimately hit $400,000 in value.
According to Santiment, cryptocurrency optimism has dropped to near-record lows for 2021, even though some analysts double down on Bitcoin’s price goal of $400,000 per coin.
According to Santiment, sentiment has plummeted after Bitcoin’s decline below $60,000 to its current price of $56,300 and Ethereum’s drop below $2,000 this week. The price of ether is reportedly $1,986.
😏 The crowd mood toward #Bitcoin and #Ethereum appears to have dropped to extreme negative territory after $BTC fell back under $60k & $ETH dipped back under $2k this week. Historically, buying during this level of #FUD & fear is a #bullish opportunity. https://t.co/u7LKbvoqSt pic.twitter.com/ZTxQFroEfM
— Santiment (@santimentfeed) April 7, 2021
But other analytics platforms show a less convincing shift with crypto predictive data platform Augmento seeing sentiment slide from ‘bullish’ to ‘slightly bearish’. The Alternative Crypto Fear and Greed index meanwhile shows almost no change, with the counter still clearly sitting at “greed”
Yesterday’s sell-off, which saw the entire cryptocurrency market cap drop briefly below $1.8 trillion before stabilizing around $1.9 trillion, doesn’t appear to bother seasoned analysts. Quantum Economics founder Mati Greenspan stated in his April 8 newsletter that the dip “took place on relatively low volumes.”
He observed that Bitcoin miners seem to have missed the drop, with the network’s hash rate hitting an all-time high of 179 million exahashes, and that “miners are hoarding Bitcoin right now instead of selling it back to the consumer.” This is sometimes interpreted as an indication that they anticipate higher costs.
History suggests BTC only getting started
Released on April 5, a report by Bloomberg Intelligence Strategist Mike McGlone predicted Bitcoin could soon approach $400,000 based on past Bitcoin bull runs, adding:
“In September, 180-day volatility on the crypto about matched the all-time low from October 2015. From that month’s average price, Bitcoin increased a little over 50x to the peak in 2017”
Although the study does not define a time period for when this high could be reached, it does state that the price is expected to “breach $60,000 resistance and head towards $80,000” during the next quarter.
“Ecoinometrics,” a Bitcoin statistics account, tweeted that traditionally, the BTC price broke out between 300 and 350 days after recent halvings. We are currently 329 days out from the most recent halving. If recent halvings are any indication, the price of Bitcoin could rise above $700,000… or fall well below $40,000.
166 Interactions, 4 today