Bitcoin is on the precipice of a major rise or an epic fall. Whether it goes up or down at a crucial price point will determine its future.
Bitcoin has reached a critical price point which could “make or break” the cryptocurrency according to experts.
According to experts, US$42,000 is the key value to watch.
Whether BTC goes up or down at that price will determine whether the coin can push its way back up to $50,000 or drop below the $40,000 threshold.
Bitcoin’s 24-hour low was US$42,486.17. At time of writing, it was slightly higher, at $43,000.
Over the last week, the top-ranked cryptocurrency has traded between $41,500 and $43,000 but it could be on the precipice of a major rise or an epic fall.
Tensions between Ukraine and Russia have impacted global markets, concerned the conflict could descend into full-blown war, and are also spooking cryptocurrency investors.
CoinTelegraph’s Jordan Finneseth wrote: “Most agree that $42,000 is the level to watch” later describing it as a “Make or break zone”.
“Bitcoin is once again pinned below resistance at $43,000 and awaiting some spark in momentum that can sustain a rally back to the $50,000 range”.
Chief economist and American stockbroker Peter Schiff had a sobering outlook for Bitcoin holders.
He believes that if Bitcoin dropped below $30,000, it would be “bad” to say the least.
A $10,000 drop, which was the number Bitcoin hit last month at its worst price point, could see the coin go into free fall, according to him.
The investing expert didn’t hold out hope for support levels either; if the digital asset fell below the $30,000 threshold, it would keep falling.
“A drop to $10K would seem like a lock, but there‘s no reason to believe that level would hold up as a permanent floor … the real floor is zero,” he wrote.
Meanwhile, US market analyst Tom Lee admitted that in the short-term, Bitcoin was dipping because of various vulnerabilities.
However, he had a bullish long-term outlook on the coin, predicting it would hit US$200,000 in value over the next couple of years.
With inflation the worst it’s been in 30 years, rising interest rates and with limited profits to be made from bonds, Mr Lee predicts more people to turn to Bitcoin, he told CNBC.
“Interest rates look like they’re set to reverse almost 30 years of declines,” he said.
“That means for the next 10 years, you’re guaranteed to lose money owning bonds … that’s almost $60 trillion of the $142 trillion [of US household net worth].”
Later in the interview, he added: “It’s really going to be tracing its roots to a rotation out of bonds and it’s going to eventually flow into crypto.”
Another market analyst from the US, Caleb Franzen, said Bitcoin is currently on an upwards trend.
“Crossovers are bullish/bearish depending on the direction,” he wrote.
“Bullish crossover happening now.”