Bitcoin’s price plummeted close to 77% in the past 11 months from its previous all-time high of $20,000. The largest coin lost almost 40% of value in November; the Bitcoin price currently trades around $4,200 after collapsing to this year to a low of $3,500 last week.

Although Bitcoin’s price bounced back slightly in the past few days, some analysts believe it’s a “dead cat bounce”. The flagship currency hasn’t found the bottom yet despite the long bearish trend, according to the Asia-Pacific Head of Trading at the foreign exchange brokerage, Oanda.

Source: coinmarketcap.com

He predicts the Bitcoin price will fall to about $2,500 to find the floor of the selloff. He claims that the behavior of the largest crypto coin over the previous few months doesn’t signify that a bottom is in. He further claims that the environment is mostly bearish in crypto markets as buyers are hesitating to take position while sellers are looking to reduce their losses due to a panic situation.

He said, “What I’m looking at here is the way coins have been trading over the last few months. It’s indicated that the bottom is not in so, therefore, I don’t think any mature investor is willing to catch this falling knife. And that tells me there is more room to go and as soon as we hit some of these key round figure inflection points like $3,500 and $2,500, the psychological impact will weigh on more inexperienced traders.”

The Asia-Pacific Head of Trading at Oanda remains optimistic about the outlook of blockchain technologies but claims that uncertainty in crypto markets in the near term makes these assets unattractive to both inexperienced and experienced traders, which he believes will have a massive negative effect on the Bitcoin price.

“Given the momentum we’ve had over the past year, this price action is not positive, and despite what soothsayers say, it’s not a good time to go in because we can’t quantify what we’re really buying at these levels, so this is the issue I have with trying to understand coins at specific inflection points,” he added.

Conclusion

Cryptocurrency markets have always been unpredictable due to their unregulated nature and speculative price movement. It’s true that the overall market environment remains gloomy, Bitcoin bulls are looking towards the NYSE Bitcoin future contracts, and the inflow of cash from institutional investors.

Has Bitcoin found the bottom around $3,500 last week? Express your opinion in the comment section.