On November 10, Bitcoin, the cryptocurrency most valuable of the cryptographic market peaked in history at $69,004.77
A few days later, its price started to decline and the decline definitely deepened this week when the cryptocurrency settled and showed resistance at $48,000.
Behind this stagnation in its price, there are multiple reasons as well as future predictions of how much Bitcoin could be worth next year.
Different companies specializing in cryptocurrencies explained what is really happening with the market.
WHY DOES THE PRICE OF BITCOIN KEEP FALLING?
According to data from Material Indicators, a research firm that analyzes the crypto market with algorithms, traders are continuously buying and selling Bitcoin for short-term profit while whales are just buying.
A whale is, simply put, an actor who controls a large enough portion of Bitcoin to be able to influence its price. According to a study by the National Bureau of Economic Research (NBER), 10,000 investors concentrate the largest amount of bitcoins on the market and for this reason, they are able to control the price of the cryptocurrency.
“During none of the falls that Bitcoin had this year have we seen that traders and whales bought with true conviction,” they detail from the organization.
This behavior is pushing Bitcoin below $60,000 and creating a downtrend across the market.
WHAT WILL HAPPEN TO THE PRICE OF BITCOIN IN 2022?
All projections on the price of Bitcoin are based on the fundamental and technical study of the cryptocurrency. Therefore, depending on who performs the analysis, the conclusion changes and the forecasts may be incorrect.
In other words, Bitcoin price predictions are not an exact science and for this reason, future investors are advised to do their own research and trade based on the risk they may take and the capital they may lose as it should never invest money that you are not willing to lose.
With this in mind, Coincodex, a platform that collects information from the cryptographic ecosystem, marks that 69% of investors are “bearish”, that is, they have a downtrend on the future price of Bitcoin.
On the other hand, WalletInvestor, a platform that predicts the future price of cryptocurrencies using machine learning algorithms, reports that Bitcoin could be worth $81,600 in one year, therefore, this may be a good opportunity to buy and prepare for the next one. come up.
