As Bitcoin (BTC) undergoes a correction and retreats to the low $90,000 range, analysts are divided on how much further the leading cryptocurrency may drop before a potential rebound. Despite short-term volatility, seasoned market watchers remain optimistic about BTC’s long-term trajectory, foreseeing a future where Bitcoin could potentially reach a million dollars or more in the years to come.
Predictions Point to Bitcoin Reaching $1.5 Million by 2035
Renowned cryptocurrency enthusiast Timothy Peterson recently shared his forecast, projecting that Bitcoin could soar to $1.5 million by 2035, using Metcalfe’s Law as a basis. This estimate signifies a nearly 15-fold increase from its current price over the next decade.
For those unfamiliar with Metcalfe’s Law, it posits that a network’s value is directly proportional to the square of its users, suggesting that as more participants join, the network’s utility and worth grow significantly. In the case of Bitcoin, this theory implies that its value will surge as more individuals adopt and utilize the network.
Peterson, known for his bullish views on Bitcoin, authored the groundbreaking paper “Metcalfe’s Law as a Model for Bitcoin’s Value” which leverages the law to predict Bitcoin’s price trajectory. He firmly believes in BTC’s global adoption inevitability, stating:
Traditional currency models may not apply to bitcoin, but various mathematical principles that explain network connectivity provide a compelling explanation for its value.
Peterson’s accuracy in identifying crucial market trend reversals has been proven in the past, such as correctly pinpointing Bitcoin’s local bottom in September of the previous year.
Anticipating Further Decline Before a Rebound for BTC
While Peterson’s optimistic $1.5 million projection is exciting for Bitcoin enthusiasts, the cryptocurrency’s present price action might be unsettling. Over $524 million in liquidations have occurred in the last 24 hours, with $136 million involving BTC alone.
Crypto analyst Keith Alan expressed his thoughts on Bitcoin’s recent price movements, suggesting that the current dip may not be over. According to Alan, selling pressure is driving the price down, while potential buyers seem to be waiting for lower levels to make substantial purchases. He elaborated:
It’s evident that the sell-off is exerting downward pressure on the price. The intentions behind the buy walls remain unclear, but what’s certain is the lack of conviction at these price levels, with liquidity being subject to manipulation or spoofing.
Alan identified $91,500 as a potential support level, with $86,500 serving as a secondary defense line. With over $300 million in bid liquidity at these levels, a rebound for BTC from these points seems likely.
He also noted that a drop to $86,500 would represent a 20% decrease from Bitcoin’s recent all-time high (ATH) of $108,135. However, if this support fails, there is a potential risk of BTC declining further to $77,900 to fill the CME gap.
Conversely, crypto analyst Ali Martinez recently highlighted the possibility of BTC climbing to $275,000, citing the cup and handle pattern formation on the weekly chart. At the time of writing, BTC is trading at $92,805, reflecting a 3.3% decline in the past 24 hours.
