Bitcoin could ‘drive people nuts’ for months with $53K BTC price ceiling — analyst
Bitcoin (BTC) may spend “months” ranging between recent $42,000 lows and $53,000 and cause panic in the process, popular analysts warned on Dec. 6.
Discussing the BTC price outlook on Twitter, Scott Melker, known as the Wolf of All Streets, said that ranging behavior could last well into 2022.
Bitcoin price bottoms could sink still deeper
After failing to reclaim even $50,000 after last week’s crash, BTC/USD is spawning bearish sentiment this week.
As sentiment sits deep within in the “extreme fear” zone, Melker joined those steering clear of the sky-high short-term price predictions that were previously ubiquitous.
“My general view. >53K again resumes the bullish case. <42K again puts 28K back in play,” he summarized.
“Everything between the two numbers now is ranging chop that will drive traders into a panic. People will be extremely bullish at 53K and bearish at 42K if either is reached.”
A further post put the timeframe for such price action to play out at “a few months.”
“December has a high probability of range-bound chop, the ideal time to take some time off from the charts, make a few well-thought-through trades, and recharge for next year,” filbfilb, co-founder of trading platform Decentrader, continued.
Their comments mimic those of fellow popular trader Pentoshi, who made waves on Dec. 6 while acknowledging that Bitcoin could still dip to $30,000.
— Pentoshi (@Pentosh1) December 6, 2021
That would place BTC/USD de facto back at its 2021 starting position and over 50% down against the year’s all-time highs.
“Trading at a decent discount”
Dec. 6’s Wall Street open, meanwhile, had barely any impact on Bitcoin, markets remaining comparatively steady as stocks saw a light move higher.
As critics took aim at Bitcoin’s alleged lack of ability to act as a store of value, proponents looked for clues as to whether the market was fairly valued after the sell-off.
For analyst Willy Woo, the on-chain data said it all.
“We’re currently trading at a decent discount,” he revealed, highlighting the Bitcoin Supply Shock Valuation (SSV) metric.
SSV looks at the last time on-chain demand matched current levels, with the implication being that prices should be higher under current circumstances.
This model does a look back on previous times that #bitcoin had similar on-chain demand.
We’re currently trading at a decent discount.
It’s a model for investors, not traders who can easily be liquidated well before the model plays out. pic.twitter.com/w9byxBiX6M
— Willy Woo (@woonomic) December 6, 2021
Woo had previously noted that the most recent dip was accompanied by smallscale investors increasing their BTC exposure.