Bitcoin's steep rise in recent weeks has made traders and investors nervous. Since the spread of the crypto industry has become a global phenomenon in recent years, experts, analysts and ordinary users are trying to predict the behavior of crypto assets.
Many of them succeed in their forecasts, many make them incorrectly. But the recent weeks of the bear market have made Bitcoin price prediction simply the trend of the month. The crypto system is seriously perplexed by the free fall of prices over the past week and most are blaming Craig Wright's "hash wars", manipulation of Tether and pumping up the price of Bitcoin.
Patrick Palacios, CEO of Appsolutely and LoyalCoin, brought together all the opinions and noted:
The Bitcoin sell-off is a combination of everything: the Bitcoin Cash hard fork, pump-and-dump schemes that organize groups of traders, lack of regulation, OKEx accusations of market manipulation. All this leads to very emotional trading.
In his opinion, this market situation will remain for several more weeks, and possibly months. It is difficult to predict when Bitcoin will stop falling and find its “fair” value.
Such a “fair” value can be determined using an economic model based on a price equation, the choice of which gives the final result.
So, if we use the Whitley model for calculations, the cost of Bitcoin based on demand can be $1242.64.
The Hayes economic model is based on an analysis of the supply level. According to its formula, the fair value of Bitcoin is $10,179.25.
Well, the third economic model considers market demand and supply in one equation. According to its results, $10,845.77 will be a fair value.
Analyzed by Greg Giordano, all three models gave reason to think about the current situation in the crypto market. On the one hand, the profitability of mining crypto assets has decreased significantly. On the other hand, the number of transactions has increased, along with the growing number of registered Bitcoin wallets and the stability of resources consumed by the mining of crypto assets.
It is too early to talk about which of the three models will be correct. All experts agree on one thing - we will see a continuation of the period of high market volatility and bearish sentiment.
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