Bitcoin price is at a critical inflection point, according to most analysts across the market, either ready to lose support and drop deep into a bear market, or about to rise to new highs – nothing in between.
Those on the downside of the fence are already asking for lows below $10,000 and others are suggesting a deeper decline than Obscure Thursday. However, important data suggests that the absolute price floor of BTC is around $14,000 per currency. Here’s why.
Speculating on cryptocurrency correction and potential cycle targets
As a speculative market, participants are often seen to speculate with good reason, predicting prices in the hundreds of thousands per currency in the future or projecting a drop to new lows.
With extremes on both sides, a target deeper in reality is rather likely. Bitcoin will not hit $400,000 or more this cycle, nor will it drop below $3,000.
Why $14,000 May Be the Key Minimum Price for Bitcoin
The currency price has risen more than four times since then, but is now coming back down almost as fast as it hit new highs.
As for how far the leading cryptocurrency by market capitalization can fall, the low point shouldn’t be more than $14,000 for fundamental reasons. The production cost of each currency is currently around that price for most miners, reaching around $22,000.
All previous bear phases eventually dropped to the minimum price according to the Production Cost tool created by Charles Edwards. Touching it again may be necessary for the bear phase to complete.
At the same time, Edwards’ Hash Ribbons tool is starting to round up and may soon provide the most profitable buy signal of the history of cryptography.
Adding more credibility to the theory that $14,000 is the price floor is the Elliott’s Wave Principle . The study suggests that a “wave four” will never fall into “wave one” price territory. If the June 2019 peak was wave one, practice says that for wave four to be valid, these conditions must be met.
After wave four comes the grand finale wave five, which should send Bitcoin to the upper side of commonly discussed speculative targets.
Source: News BTC