Crypto

With a $53k BTC Price Ceiling, Bitcoin Could ‘Drive People Insane’ for Months

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With a $53k BTC price ceiling, Bitcoin could ‘drive people insane’ for months, according to an Analyst.

Popular names concur that the likely beneficiaries of the next BTC price movements will be investors, not short-term traders.

Popular analysts warned on December 6, 2021, that Bitcoin (BTC) might spend “months” fluctuating between recent $42,000 lows and $53,000 highs, causing panic.

Scott Melker, also known as the Wolf of All Streets, suggested on Twitter that range behavior might last well beyond next year, 2022 when discussing the Bitcoin (BTC) price prognosis.

The bottoms of Bitcoin’s price could fall even lower.

BTC/USD is generating gloomy sentiment this week after failing to regain even $50,000 following the previous week’s fall.

Melker joined those avoiding the sky-high short-term price projections that were previously popular as emotions sank deep into the “severe fear” zone.

This is my general opinion.

The bullish case is resumed at 53K, and 28K is reintroduced at 42K “he summed up

“Everything between the two numbers is currently ranging wildly, causing traders to fear. If either level is met, people will be extremely bullish at 53K and negative at 42K.”

A subsequent post predicted that such price action would take “a few months” to play out.

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“With a high possibility of range-bound chop in December, it’s the best moment to step away from the charts, make a few well-thought-out trades, and recharge for next year,” concluded filbfilb, co-founder of trading platform Decentrader.

Their remarks echo those of Pentoshi, a well-known trader who made headlines on Dec. 6 by admitting that Bitcoin may still fall below $30,000.

BTC/USD would then be de facto back to where it was in 2021, and almost 50% lower than the year’s all-time highs.

“Trading at a reasonable price”

Meanwhile, the opening of Wall Street on December 6 had little influence on Bitcoin, with markets remaining relatively stable as stocks rose slightly.

While critics pointed to Bitcoin’s purported inability to operate as a store of value, supporters looked for signs that the market had been fairly valued during the sell-off.

The on-chain statistics, according to expert Willy Woo, told it all.

“We’re trading at a decent discount right now,” he said, referring to the Bitcoin Supply Shock Valuation (SSV) indicator.

SSV examines the last time on-chain demand matched current levels, implying that prices should be higher in the current environment.

Woo earlier stated that the most recent drop coincided with small-scale investors expanding their BTC exposure.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.