Even if crypto sentiments have shifted this week due to the dip experienced, experts are confident that Bitcoin (BTC) has the potential of hitting $400,000 ultimately. Santiment, an analytics company, reported on the 20201 cryptocurrency sentiments and pointed out that this time near-record lows have been attained. Despite this dip in sentiments, there are experts that are confident of a Bitcoin price target of $400K in the end.
😏 The crowd mood toward #Bitcoin and #Ethereum appears to have dropped to extreme negative territory after $BTC fell back under $60k & $ETH dipped back under $2k this week. Historically, buying during this level of #FUD & fear is a #bullish opportunity. https://t.co/u7LKbvoqSt pic.twitter.com/ZTxQFroEfM
— Santiment (@santimentfeed) April 7, 2021
From the chart presented below from Santiment, one can see how BTC nosedived from its price of $60,000 to the current $56,300. Ether also dipped to under $2,000 this week and as Santiment reveals, it is trading at $1,998.
Chart showing Bitcoin’s dip. Source Santiment
When one reviews data from other crypto analytic platforms, the shift is different and less convincing, For example, Augmento, a crypto predictive data platform shows the sentiment changing appearing to be slightly bearish, from the bullish trends seen in the past. On the other hand, the Crypto Fear & Greed Index from Alternative reveals almost no change in the counter since it shows BTC sitting at ‘greed,’ which was the same position it was sitting at last week.
Alternative Fear & Greed Index. Obtained from Alternative
Experts’ Confidence in Crypto Remains Steadfast
The sell-off witnessed yesterday saw the crypto market briefly go below $1.8 trillion but it later stabilized at approximately $1.9 trillion. Seasoned analysts were not bothered by this sell-off and their confidence in the crypto market remains unwavering. One such expert is Mati Greenspan, the founder of Quantum Economics, who stated in an April 8 newsletter that this dip occurred in relatively low volumes.
Greenspan added that BTC miners did not even notice this deep since the hash rate in the network saw new highs of 179 million exahashes. He also noted that these miners were hoarding Bitcoin rather than selling it; if history is anything to go by, this is a sign of higher prices in the future.
Chart showing the increase in the hash rate. Source Messari
Bitcoin’s History Boosting the Confidence of a Potential Upward Trend
Bloomberg Intelligence strategist, Mike McGlone, released a report on Monday predicting the possibility of Bitcoin reaching $400,000 based on the bull runs the cryptocurrency has experienced. In this report, McGlone talked about September’s 180-day volatility that is comparable to the October 2015 all-time low. Judging Bitcoin’s average price from that month to the 2017 peak, it increased by over fifty times.
The report does not specify a timeline for achieving this peak, but McGlone is confident that over the coming quarter, the $60,000 resistance will get breached and the price will soar towards $80,000.
Image courtesy of pixabay