Bitcoin’s price will possibly see a 20 percent drop if it will reach a weekly close under $7,000, according to a crypto analyst.
A report from NewsBTC showed that Nik Patel, trader and author of “An Altcoin Trader’s Handbook”, expects Bitcoin’s price to drop to $5,680 if a close under $7,000 were to happen.
The major cryptocurrency has slowly been recovering from its lowest price of $3,700 to $7,200 recently.
As of press time, CoinMarketCap data shows that Bitcoin is trading at $6,871.28.
Morgan Creek Digital co-founder Anthony Pompliano, however, pointed that it is possible for Bitcoin’s price to rise in the long term.
One of the factors that could contribute to Bitcoin’s bullish outlook include central banks and governments distributing money, reducing interest rates, and boosting the bond markets to sustain the economy in the midst of the COVID-19 pandemic.
Bitcoin’s halving could also provide “rocket fuel” for the cryptocurrency’s price as Bitcoin will be more scarce than gold and fiat money if there will be a 2 percent annual inflation rate and a 2 percent annual growth of the physical stock of gold.
Bitcoin’s halving is set for May 2020.