Bitcoin has done well over the past week with multiple rallies sending the digital asset’s price back to early November 2022 levels. However, while investor confidence appears to have picked up significantly, not all they expect BTC to continue to perform well. Coinmarketcap’s price estimates feature reveals that a large number of investors expect the price of the cryptocurrency to fall in the next two weeks.
12% decline for Bitcoin
Coinmarketcap’s price estimates feature allows users to input their forecasts for the price of any digital asset and then produces an average price based on everyone’s predictions. This can help give a good idea of the community and how they are looking for an asset.
For bitcoin, it seems that not many investors expect the pioneering cryptocurrency to continue this recovery trend. With over 19,000 price estimates submitted, the median resulted in an expected 12% decline in the bitcoin price over the next two weeks. Such a decline would actually cause the price of BTC to drop as low as $18,634, losing more than $2,500 of its current value.
This bearish sentiment does not stop at the end of January, but continues in the following months. The estimated median price for the month of February was $18,981, representing a decrease of more than 10% from the current price, and the outlook for March was nearly identical in this regard.
The expected declines extend over the next six months with median prices getting lower. Estimates showed a decrease of between 14 and 18% for the months of April, June and July, respectively.
Bearish outlook for BTC in the next six months | Source: Coinmarketcap
Will BTC succumb to bearish pressure?
Over the past week, the bitcoin price has been able to break through several important levels. These include the 50-day and 100-day moving averages, consolidating the short-term uptrend. However, while the digital asset remains bullish in the short term, there could be more bad news in the longer term.
One important technical level that BTC has yet to clear is the 200-day moving average. This is perhaps one of the most important indicators for the digital asset to continue its upward rally in the coming months. It currently sits at $22,738, which means that another move up 5% from its current price could bring BTC head-to-head with this indicator.
If Bitcoin fixes this, the selling pressure will likely subside as more investors try to get into the asset. This would lead to a test of the $22,400 resistance level, one that would be easily broken as long as there is no slowdown on the dip. In the end, bitcoin’s long-term performance will depend on its ability to move enough to break above the 200-day moving average.
BTC price is now above $21,100 after failing to break above the $21,500 resistance level.
BTC price falls below $21,200 | Source: BTCUSD on TradingView.com
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This post Investors predict a 12% decline for BTC in the next two weeks
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