Digital Assets: Bitcoin May Drop To $10K, Says Analyst Who Correctly Called 2018 Bottom
According to the analyst, Decentrader’s Filbfilb, the upcoming winter in Europe amidst a severe energy crisis could escalate into a major emergency in 2023 and take a toll on risk assets including bitcoin.
Filbfilb, the creator of trading suite DecenTrader, has predicted that bitcoin could potentially fall as low as $ 10,000 in 2022. Note that Filbfilb was spot-on in 2018, when he said the bear market in that year would bottom out at a price of $ 3100 for bitcoin. (COIN TELEGRAPH)
Earlier this week, bitcoin plunged to as low as $ 18,450 due to a rash of selling on fears of hawkish rate hikes by the US Fed in a bid to control record inflation.
Veteran trader Filbfilb pointed to the intensifying energy crisis in Europe that could lead to a major test for all risk assets – unless diplomacy can defuse the situation.
“A lot rests on the winter and the dynamic with how Europe deals with the winter; I expect a bad winter dynamic to result in testing the previous volume range highs of $10,000–$11,000. Dialogue between NATO and Russia seems imperative with what happens next; the sooner that happens, the higher the low for Bitcoin,” he stated.
He also referred to the current heightened correlation between bitcoin and the legacy financial markets in an environment full of macroeconomic uncertainty.
Furthermore, he observed that it was different this time given that bitcoin had never before existed in the inflationary economy; therefore it was behaving as a risk-on asset rather than an inflation hedge.
Subject to this difference, “we are correcting within the normal timeframe and the usual percentage change normal for where we are.”
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