Analyst Says Bitcoin May Return To This Old ‘Peak’ Soon

Stifel’s Barry Bannister recently predicted that Bitcoin could fall 76% to $10,000 by 2023. Gareth Soloway, president and CFO of InTheMoneyStocks.com, agrees with the headwinds Bitcoin is facing in terms of monetary outlook. Bitcoin at $20K. During a recent podcasthe added,

“Bitcoin is a type of asset risk, so it’s treated like a technical stock, so very likely you’ll see more downsides.

At the time of writing, Bitcoin was well below the key psychological level of $40,000. Also on February 26, Bitcoin was unable to sustain its recovery after a short break from the level amid lingering market risks.

What does the RSI say?

If you look at the 14-day Relative Strength Index (RSI) to understand Bitcoin’s momentum, you can figure out a lot of things. Interestingly, the RSI was at its lowest point on the daily chart on February 21. Since then, it has largely maintained the 45 level.

Consequently, Bitcoin assumed a bearish trend. Essentially, this means that the likelihood of Bitcoin remaining in oversold territory appears to be higher in the near term.

Meanwhile, amid the conflict between Ukraine and Russia, the market appears to be in a state of fear. Some investors have even given in to panic selling. Still, long-term players have full confidence in the king’s coin.

ATR indicator

That said, the Average True Range (ATR) indicator continues to show high volatility in the asset’s movement. In light of that, Soloway also predicted that Bitcoin is unlikely to reach its previously projected $100K level unless “the money supply suddenly starts to rise”.

Bitcoin, for example, formed a head-shoulder pattern on its technical charts on Feb. 18. In this context, Soloway noted that if BTC breaks through its resistance, upside potential of $50,000 to $52,000 can be expected in the near term. Rather, the support will be close to the $27,000 to $29,000 range.

“I think you can hit the previous all-time highs in 2017, which is right around that 20,000 level.”

At the time of writing, BTC switched hands for $37,878 after losing its value by 2.27% in the past 24 hours.

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