Bitcoin could ‘drive people crazy’ for months with $ 53,000 BTC price cap – analyst

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Bitcoin (BTC) can go “months” between the recent lows of $ 42,000 and $ 53,000 and cause panic in the process, popular analysts warned on December 6.

Discussing the BTC price outlook on Twitter, Scott Melker, known as Wolf of All Streets, said the variation behavior could last until 2022.

Bitcoin’s lowest price could sink even deeper

After failing to recover even $ 50,000 from last week’s crash, BTC / USD is causing bearish sentiment this week.

As sentiment sits deep in the ‘extreme fear’ zone, Melker has joined those avoiding short-term price forecasts that were previously ubiquitous.

“My general point of view.> 53K takes up the bullish case again. <42K puts 28K back into play again," he summed up.

“Everything in between the two numbers is now a spread which will lead traders to panic. People will be extremely bullish at 53K and bearish at 42K if either is reached.”

Another article set the time frame for such a price action to take place at “a few months”.

“December has a high probability of a range-related chop, a great time to take some time on the charts, make some thoughtful trades and reload for next year,” filbfilb, co-founder of the trading platform Decentrader, continued.

Their comments mimic those of another popular trader, Pentoshi, who made waves on December 6 while acknowledging that Bitcoin could fall further to $ 30,000.

I wouldn’t be surprised if this happened for $ btc. It is a real possibility. I would be ready for it https://t.co/Qw4XggiDdV

– Pentoshi (@ Pentosh1) December 6, 2021

This would de facto bring BTC / USD back to its starting position of 2021 and down more than 50% from all-time highs of the year.

“Negotiate with a decent discount”

The opening of Wall Street on December 6, meanwhile, had virtually no impact on Bitcoin, with markets remaining relatively stable as stocks rose slightly.

Related: BTC Sentiment ‘Like a Funeral’ – 5 Things To Watch Out For In Bitcoin This Week

As critics targeted Bitcoin’s alleged lack of ability to act as a store of value, supporters searched for clues as to whether the market was properly valued after the sale.

For analyst Willy Woo, on-chain data says it all.

“We are currently trading at a decent haircut,” he revealed, highlighting the Bitcoin Supply Shock Valuation (SSV) metric.

SSV looks at the last time on-chain demand matched current levels, implying that prices should be higher under current circumstances.

This model takes a look back at times when #bitcoin had similar demand on the chain.

We are currently trading at a decent discount.

It is a model for investors, not for traders who can easily be liquidated long before the model comes to fruition. pic.twitter.com/w9byxBiX6M

– Willy Woo (@woonomic) December 6, 2021

Woo previously noted that the most recent drop was accompanied by small-scale investors increasing their exposure to BTC.

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