Mauro Liberman estimates that the price of Bitcoin might reach USD 14,000 if it loses support at USD 18,000. The analyst believes little liquidity is due to speculation on macroeconomic movements, a possible recession, and rising interest rates.
The Bitcoin (BTC) price recently dropped to USD 18,000, leading many to wonder where it will go and where it will find its next support.
Mauro Liberman, the co-founder of the CrypStation café, has been a cryptocurrency trader and analyst for over five years. He believes the market will continue with hoarding phases at a 70% to 80% level to the downside compared to its last high.
Bitcoin is trading 73% below its all-time high at nearly USD 69,000. That seemingly serious setback is similar to others it has had in the past but is not the biggest. Likewise, the pioneering had always recovered from each fall to reach a new all-time high until last year.
Liberman considers that Bitcoin has not yet bottomed out in this bearish stage, given the typical setbacks and the market state. The specialist recalled that in the crisis of 2018 and the pandemic, it dropped by 80%. Although that situation caused 60% of portfolios to suffer losses, he now notes that it does not reach 50%.
Those owners of the cryptocurrency in unrealized losses are those buying it at prices higher than the current one since late 2020. The beginning of the crypto boom drove high demand, increasing its value to almost USD 69,000 in November 2021.
In addition, he believes little liquidity entered the market due to more speculation on macroeconomic movements, a possible recession, and rising interest rates. He agrees with the stock market and cryptocurrency analysts that the selling wave continues due to fear of the discouraging context.
Bitcoin Might Reach USD 14,000 If It Breaks the USD 18,000 Support
From his long-term bullish view, Liberman maintains there is still time to hoard between USD 18,000 and USD 21,000. However, he highlights that the price of Bitcoin will reach lower prices if its demand remains unconsolidated and breaks to the downside.
Bitcoin could head for USD 14,000 if it does not form support at USD 18,000, implying an 80% correction from its all-time high. That projection is close to bearish predictions from other analysts, who agree that the cryptocurrency has not bottomed out yet.
BTC is trading at around USD 18.96 and has accumulated a 5.6% loss over the last 24 hours. While its daily trading volume is above USD 20.37 billion, its market capitalization is about USD 364.62 billion, according to CoinGecko.
Bitcoin has played a crucial role in the economy since its inception, which those supporting it cannot overlook. The price of the pioneering cryptocurrency always rebounded from its worst lows to resume its previous all-time highs. Many analysts think it is undergoing a necessary correction before rebounding to its bullish trend.
By Alexander Salazar