A famous Crypto analyst believes that as the current Bitcoin price continues to tank, BTC will fall to such a lower extent that prices may even sum up to four-figure amounts. It is hard to see Bitcoin, the flagship crypto asset plunging to such low levels.
Crypto analyst Justin Bennett also states that a bearish flag pattern is forming on Bitcoin’s chart, indicating the leading digital asset could plunge to a price target of around $8,500.
Bitcoin Price Analysis
Statistically speaking, if a trend line is drawn over the chart, then a steady decline in crypto prices can be traced. This rightly coincides with the crypto prices right now, specifically Bitcoin trading southwards. He also states that if we draw a trend line starting from the high of 2017 to the present, Bitcoin could dive under $10,000.
Studies claim that the increasing inflation is a significant factor that has caused BTC prices to take such a hit. Since crypto has been quite a recent discovery, it has never experienced the adversities of an economic recession, unlike the stock market.
Hence, traders are significantly clueless about how they must respond to the current situation. For instance, when the previous economic recession hit the world, crypto was not even a thing people were aware of in 2008 and 2009.
Therefore, the crypto patterns cannot be evaluated or predicted using any of the previous circles because this is something that’s never happened before. So the ideas derived from studying these circles will not be able to provide any substantial material.
Thus, crypto is basically an unknown entity that no one can claim to know very well amidst an economic crisis. This was not present in any prevailing macroeconomic situations before, and hence traders are at a blank as to how they should navigate in this unknown route.
What is the Impact of Global Inflation on Traders?
The situation caused by the global inflation, which has reached the 40-year mark now, is also not helping in making situations improve. A significant reason for this is the Feds’ increasing strictness, which resulted from the inflation itself.
Traders have claimed that they have never ever experienced such strictness from the Feds before while trading. In the absence of situations like inflation, the Feds are generally understanding and accommodating.