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Market Musings

Bitcoin Slides Further — But One Analyst Thinks It Could Hit $387,000 in May

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Published on:
March 16, 2021

Ecoinometrics says "there's no reason to panic about a little dip" if Bitcoin repeats its performance in past halvings.

Bitcoin Slides Further — But One Analyst Thinks It Could Hit $387,000 in May

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Bitcoin has continued to slide further away from the all-time highs set over the weekend — tumbling as low as $53,555.05 on Tuesday.

 

After racing above $61,600 on Saturday, bulls appear to be taking a backseat as the markets are dominated by profit taking.

 

BTC is down 2.4% over the past 24 hours — but things are a little calmer when it comes to Ether’s price, which is up 0.57%.

 

On Twitter, the analytics account ecoinometrics said there is “no reason to panic about a little dip.” It shared an image that projects where Bitcoin is heading next, based on the growth range that was seen in past halvings.

 

If BTC’s growth rate mirrors previous halvings, ecoinometrics said Bitcoin could hit $100,000 on April 18, and surge to $387,000 by May 12. Prices would subsequently cool to $286,000 by October 17.

 

Of course, past performance doesn’t always accurately indicate what’s going to happen in the future — and we’ve already seen Bitcoin defy expectations.

 

Interesting Trends 

New research has cast a light on how different market participants have been reacting to the elevated prices that were seen over the weekend.

 

According to Glassnode, there is a stark divide between long-term holders (who own coins that are more than 155 days old) and short-term holders who fall under this 155-day threshold. It revealed that more than 95% of spent outputs concern young coins — indicating that they belong to newer investors who are “more sensitive to price volatility.”

 

Meanwhile, long-term holders are characterized as “reasonably knowledgeable about the Bitcoin protocol and have high conviction in the asset. They tend to accumulate cheap coins in bear markets and realise profits on expensive coins in bull markets.”

 

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Connor Sephton

I cover the crazy world of crypto.

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