Cryptocurrency analysts predicted the price bitcoin will reach before a new drop

According to analysts at QCP Capital, investors should not expect the cryptocurrency winter to end — even after crossing the $ 20,000 mark, the BTC has every chance of collapsing, experts believe. QCP Capital representatives published their thoughts and forecasts for 2023 in the January issue of The Crypto Circular.

After conducting a long-term price analysis by the Elliott Wave, the analysts found that the current market potential is Wave 4 for BTC $56,852.47 Bitcoin -0.23% Market capitalization $1.12 trillion VOL. 24 hours $1.19 billion , a bear market movement. «We are of the opinion that the current rebound from the November 2022 lows is only a correction of Wave 4, so we expect a final sell-off in Wave 5,» QCP Capital experts explained.

Analysts believe that bitcoin could rise to $ 31,850 before setting a new low. The Elliott Wave theory states that the Fibonacci retracement levels of 20%, 38.2%, and 50% are of particular importance in Wave 4. Since bitcoin has already corrected almost 20% of the recent macro lows, the two remaining target prices are now $ 27,100 and $ 31,850.

At the time of writing, BTC has lost 2.8% of its value over the past 24 hours, and yesterday the flagship cryptocurrency dropped almost $ 1,000 in just an hour and a half. This happened two hours after bitcoin quotes reached $ 21,550. This mark was a four-month high for BTC.

Some analysts attributed the sharp drop in bitcoin to a statement by the U.S. Department of Justice about tighter control over the digital asset industry. In addition, US Federal Reserve President Jim Bullard proposed that the central bank raise the rate by 50 basis points at its next meeting on February 1. The situation around the cryptocurrency broker Genesis Global Capital, whose representatives are preparing to declare bankruptcy, played a role in the fall in bitcoin’s value.