The price of Bitcoin peaked at $20,000 last December, but went on a seemingly unending fall since then, plummeting to $7,200 in February. At the moment of writing, 1 Bitcoin is priced at $8,800, though it’s likely that it will change soon.
Crypto analysts and enthusiasts expect the cryptocurrency to be in more considerable turmoil in the coming months. The 50-day average of Bitcoin has dropped nearest to the 200-day moving average. In simpler terms, Bitcoin experienced its most volatile months, which might mean that it will continue to fall in price.
Reports state that the “great Bitcoin slump” will happen soon and will be caused by its negative reputation that gets added each day. Fortunately, most crypto investors don’t seem to listen to much to technical analysis.
Technical analyst Paul Day forecasted that there would be a significant change in how cryptocurrencies will be used this year, which will ultimately cause its bubble to burst.
He added that this could be compared to the drastic decrease in the price of Bitcoin and other cryptocurrencies during year-end last year. Only this time, it’s going to be much worse, according to Day. He used the data from the 2013 crypto slump to forecast a 76 percent fall in Bitcoin price.
To make matters worse, he said that the downward spiral of the crypto had already begun when Bitcoin hit the $7,000-mark last Thursday. He concluded that Bitcoin can fall as low as $2,800 or even lower this year if the downtrend is repeated multiple times.