Gareth Soloway, chief market strategist at InTheMoneyStocks.com, believes that Bitcoin (BTC) will fall further. According to him, the $20,000 level will not be sustained for long.
For Soloway, Bitcoin will have a further correction despite showing signs of recovery above $20K. More precisely, he believes the next likely drop target for Bitcoin will be $12,000.
Furthermore, it said that there is a possibility that BTC could further correct to $10,000 based on historical trends.
According to Soloway, the current macroeconomic environment of high inflation and rising interest rates makes bad ground for BTC.
“It is important to recognize that it is very possible that we will go below $10,000,” he said.
As the strategist pointed out, the policy of the US Federal Reserve is taking money and sucking it out of the system.
Therefore, with less money, investors are less likely to invest in Bitcoin. Thus, if Bitcoin maintains its price above $20,000, the level will attract more bulls.
That way, the top cryptocurrency on the market can even go back to $30,000 and beyond. That is, sustaining the price above $20,000 will offer a feeling of strength for BTC.
“The level will show the market that the bottom has been reached and that, from now on, there will only be an increase”, he points out.
However, he ruled out that this could happen now, in an unstable macroeconomic scenario.
He also said that the notion that Bitcoin can go back to zero is completely fictional. According to him, the long-term outlook is in favor of BTC, but the next six months will be challenging.
On the possibility of reaching $65,000, Soloway projected that Bitcoin could take at least two years to do so.
He stated that if inflation cools, the Federal Reserve will likely print more money, favoring Bitcoin.
Also Read: Millionaire Vitalik Buterin Criticizes Cryptocurrency Millionaires
Also read: Those who bet on the decline of cryptocurrencies profited 130% in 2022
Read also: Chinese newspaper claims that Three Arrows Capital sought loan with Binance