As Bitcoin (BTC) experiences a decline into the lower $90,000 range, experts are divided on how much further the leading cryptocurrency could decrease before a potential rebound. Nevertheless, long-term market analysts remain optimistic, asserting that short-term price fluctuations do not change their conviction in BTC’s eventual ascent to one million dollars or more in the upcoming years.
Bitcoin To Achieve $1.5 Million By 2035
Cryptocurrency aficionado Timothy Peterson recently disclosed his forecast on X, suggesting that Bitcoin is projected to reach $1.5 million by 2035, applying Metcalfe’s Law as a basis. This prediction signifies nearly a 15-fold rise from its present price over the next decade.
For those unfamiliar, Metcalfe’s Law posits that the value of a network is proportional to the square of its user base, meaning that as the number of users increases, the network’s utility and worth grow exponentially. Related to Bitcoin, this implies that its value escalates significantly as its adoption and usage expand.
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Peterson is the originator of the widely debated paper titled “Metcalfe’s Law as a Model for Bitcoin’s Value”, which utilizes the law to forecast Bitcoin’s price trajectory. Renowned for his optimistic outlook on Bitcoin, Peterson has persistently argued that BTC’s global acceptance is unavoidable. His paper maintains:
Conventional currency models fall short regarding bitcoin, yet various mathematical principles explaining network connectivity provide a compelling rationale for its value.
Peterson has also shown precision in pinpointing crucial market trend reversals. For example, he correctly recognized Bitcoin’s local bottom in September of the previous year.
BTC To Decline Further Before Recovery?
While Peterson’s optimistic $1.5 million prediction is welcomed by Bitcoin proponents, the current price action of the cryptocurrency might cause them concern. At the time of this writing, over $524 million in liquidations have occurred within the last 24 hours, with $136 million in BTC alone.
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Crypto analyst Keith Alan provided insights into Bitcoin’s recent price behavior, asserting that “this dip hasn’t finished dipping.” According to Alan, the selling pressure is actively driving the price lower, with buyers seemingly awaiting lower prices to execute substantial purchases. He elucidated:
It’s evident that the sell side is attempting to drive the price down. It’s uncertain whether the buy walls are connected to the same entity pushing the price down, but what is apparent is that they lack conviction at those price levels, and some or all of this liquidity might shift or spoof.
Alan identified $91,500 as a likely support level, with $86,500 serving as a secondary protective measure. He mentioned that over $300 million in bid liquidity resides within this range, increasing the likelihood of BTC rebounding from these marks.
Alan also pointed out that a decline to $86,500 would indicate a 20% drop from Bitcoin’s recent all-time high (ATH) of $108,135. However, should this support fail, there is a threat of BTC falling further to $77,900 to fill the CME gap.
Conversely, crypto analyst Ali Martinez recently stressed that BTC might be on a path to $275,000, based on the cup and handle formation observed on the weekly chart. At the time of this writing, BTC is trading at $92,805, down 3.3% over the past 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com