Bitcoin’s fall from grace over the last few days has emboldened bears to come out of hiding.
Calls for a plunge to $7,000 and below are overwhelming social media channels. It appears that in one bearish push, all the hard work that the bulls put in this year has gone out of the window.
To get a better sense of where bitcoin is headed in the near-term, we asked several experts on what they think would be the bottom for this pullback. Surprisingly, there are some who still believe that bitcoin is bullish. On the other side of the spectrum, there are those who see the top cryptocurrency dropping all the way down to zero.
Some traders believe that this retracement is healthy for the long-term sustainability of the cryptocurrency. While they still expect bitcoin to drop some more, they also see renewed bullish momentum once this round of profit-taking is over.
For instance, Tomàs Sallés, a technical analyst and financial writer at FXStreet believes that the $7,000 level is critical for the dominant cryptocurrency. He said,
If the BTC/USD pair slips below $7,000 at the end of the year, it could be at $5,000. If on the contrary it resists above $7,750, we could see [it] closing in the $17,000 zone or above historical highs and $20,000 price level.
Others share the sentiment of Mr. Sallés.
Parker Evans, founder and chief investment strategist at Successful Portfolios LLC, said,
There’s technical support around the current XBT price of $8341. There should be even stronger support around $7229 at 61.8% Fibonacci retracement.
In addition, Robert Beadles, president at Monarch, told CCN.com:
Most people who are in Bitcoin are in Bitcoin. They’re holding, hoping for it to reach $20,000 and beyond. Current trends can tell me that Bitcoin may [drop] into the $7,000 range before bouncing back up to $11,000 over the next few weeks.
Lastly, Jameel Ahmad, the global head of currency strategy and market research at FXTM, sees a sharp turn up after this pullback. He said,
The closer prices gradually glide to levels potentially between $5,000 – $6,000 on the upper and lower boundary of targets, the faster the likelihood of a sudden surge back in valuation.
While there are those who believe that the leading cryptocurrency will eventually resume its uptrend, some expect bitcoin to drop to anywhere from $200 or even $0.
For example, Steven Jan Kaplan, chief executive at True Contrarian Investments LLC, said,
The multi-year low for bitcoin goes way back to its $145 bottom from early 2015. Hardly anyone can imagine bitcoin dropping that low but a price below $200 is probably a worthwhile target for the next few years.
In addition, Dr. Robert Johnson, Professor of Finance at Heider College of Business at Creighton University, is extremely bearish on bitcoin. He told CCN.com,
Bitcoin can drop to zero. It has no intrinsic value. There is no way to value cryptocurrencies other than the greater fool theory — the hope that some greater fool will pay you more than you paid.
It is the consummate bubble and investors should stay far away from cryptocurrencies in general and bitcoin specifically.
From these comments, we can easily assume that many people are waiting for the king of cryptocurrencies to drop to $7,000. If worse comes to worst, buyers would likely flood the market if bitcoin nosedives to that level. This would render calls for $200 or $0 irrelevant.