What do members of the crypto community think about the fall in the price of bitcoin?

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On the evening of September 6, 2022, Bitcoin, after a long sideways movement, went into a fall. The minimum cryptocurrency for 24 hours, according to the CoinGecko resource, is fixed at $18,644. Members of the crypto community drew attention on the fact that against the background of the fall, the coin closed the day at the lowest level in 2022. This is indicated by candlestick analysis of the cryptocurrency chart. As of the time of writing, Bitcoin has corrected to $18,779.

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Many members of the crypto community, including The CEO of the largest crypto exchange Binance, Changpeng Zhao, once again joked about the death of bitcoin amid its fall.

Why Bitcoin fell

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Probably, the decrease in BTC was the result of a number of reasons. One of them is the active struggle of the US Fed with inflation, the important details of which were the increase in the interest rate and the monthly reduction of the balance sheet by $95 billion since September 2022.

The market is also in tension due to the upcoming migration of the second largest cryptocurrency by capitalization, Ethereum, from extremely energy-intensive PoW to a more environmentally friendly PoS algorithm. The event is scheduled for the period from 10 to 20 September 2022.

Against the backdrop of the announcement of the migration date, ETH began to grow, pulling the entire digital asset market with it.

ETH developers have been preparing the migration of the project network to another algorithm for several years. Despite this, some members of the crypto community believe that moving Ethereum to PoS may not go according to plan. Others are sure that technical problems during the migration of ETH can cause investors to be disappointed in the project. As a result, malfunctions can lead Ethereum to fall.

Many members of the crypto community believe that the second largest cryptocurrency by capitalization is overvalued. According to their logic, against the background of the move of ETH to PoS and the decrease in hype around the event, the fall of Ethereum is not excluded. The fall in the rate of the second largest cryptocurrency by capitalization may put pressure on the digital asset market.

Bitcoin forecast from members of the crypto community

The opinions of representatives of the crypto industry on how BTC will behave in the near future have diverged.

Voices for Growth

Many representatives of the crypto industry believe that the current decline in bitcoin has opened up the last opportunity for investors to buy cryptocurrency at the lows. A popular member of the crypto community, leading a microblog under the nickname Galaxy, saw on the chart of the coin, a “double bottom” technical analysis figure. Its formation, in his opinion, is a harbinger of the imminent release of cryptocurrency into growth. Galaxy drew attention to the fact that a similar figure brought BTC out of cryptowinter after the 2018 lows were updated.

With Galaxy’s opinion agreed Xorstrategy CEO Oriel Ohayon. He believes that with the update of the local minimum, Bitcoin got the opportunity to move into a growth phase, which, the analyst is sure, is capable of bringing BTC to the level of $500,000 per coin by 2025.

The positive outlook for Bitcoin reinforces the growth of coins without movement. According to LookInto, the figure reached 65.92%. Growth metric like thinks the founder of the service, Philip Swift, speaks about the unwillingness of investors focused on long-term work with the coin to get rid of the cryptocurrency. This behavior of market participants, in turn, indicates their belief in the further positive movement of the BTC rate.

Also members of the crypto community drew attention on the fact that against the background of the fall of the cryptocurrency, 50% of the purchased BTC were in the loss zone. The previous declines in indicators to the indicated levels were at the local lows of bitcoin, after which the digital asset went up.

Opinions in favor of a further fall

However, there are those whose bitcoin forecast implies a further decline in the cryptocurrency rate. For example, this point of view adheres to one of the main critics of BTC is Peter Schiff.

“The market rarely gives investors time to buy an asset at rock bottom prices. Bitcoin is trading near $20,000 for 12 days. Most likely $20k is a false cyclical bottom that gave suckers extra time to board the sinking ship. It is better to leave the ship before it touches the bottom,” wrote a critic of the first cryptocurrency in his microblog.

Your bitcoin forecast also gave The Block analyst Frank Chaparro. In his opinion, the current fall of the cryptocurrency makes the assumptions about a possible decrease in BTC to $10,000 not so unbelievable.

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Source: Cryptocurrency

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