Once high-flying Bitcoin continues to plummet in value, and technical analysts don’t see it arresting that decline anytime soon, Bloomberg reported.
The largest cryptocurrency by market value has lost half of its value in 2022, stuck in a range of $19,000 to $25,000. It is currently valued at about $21,500.
Some analysts attribute the currency’s struggle to issues such as higher interest rates, high inflation and the strength of the U.S. dollar.
Bloomberg cited 22V technical strategist John Roque, who wrote in a note that he foresees Bitcoin going as low as $10,000, as well as Oanda senior market analyst Edward Moya, who wrote that it may be able to stay at $20,000. “(I)t may be tough for that level to hold if King Dollar continues to appreciate leading up to Fed Chair Powell’s speech at the Jackson Hole Symposium,” he wrote.
Katie Stockton, co-founder of Fairlead Strategies wrote in a note that she sees a middle ground. “Short-term oversold levels should produce a few days of stabilization, after which we expect a retest of and potential breakdown below long-term support in the ~$18,300 to $19,500 range,” she wrote.
Despite these outlooks, another downturn is yet to come, if the past is any predictor of trends: Bitcoin’s price has fallen in each of the last five Septembers, by an average of about 10 percent.