Trader Gareth Soloway predicts the “worst case scenario” for bitcoin

According to the expert, the price of the first cryptocurrency may fall to the level of $3500

14.10.2022 - 12:45

490

2 min

What’s new? Gareth Soloway, the chief market strategist at InTheMoneyStocks.com and trader, has allowed a further bitcoin correction, noting that in the “worst case scenario” the price of the asset could fall to the $3500 level. In this, the expert noted that if this level is reached, the growth of the cryptocurrency will repeat the dynamics of Amazon stock prices during the “dot-com bubble.” He said this in an interview with Kitco News.

Broadcast on YouTube

What else does Soloway say? At the same time, the trader noted that bitcoin could hit the bottom in a year before its price starts rising again. He added:

“There will be a pivot in Bitcoin as it matures as regulation helps people feel more confident. […] I think in the near term we’re going to see a little bit of a bounce then a wave down to $12 000 to $13 000, and then I do worry that you’re going sub $10 000 to $8 000 maybe even worst case scenario $3 500.”

Soloway noted that as bitcoin “matures,” it will be treated like gold, also the asset will break its correlation with the stock market. The expert added that the underlying factor for the future growth of BTC will be the trust of large companies. However, in his opinion, the institutional contribution depends largely on the regulatory framework, as it provides a sense of comfort among investors.

On October 14, 12:40 UTC, bitcoin is trading at $19 702, having gained 7,18% per day, according to Binance.

In June, Soloway speculated that bitcoin would face a further correction below $20 000, despite signs of a recovery above that level. In his opinion, the next likely downside target for the asset would be $12 000, but the analyst also allowed for a correction below $10 000.

Author: