Bitcoin (BTC) recorded its worst-performing year on record in 2018. The asset closed at a more than 70 percent lower price than its yearly open. Considering price action and network value, 2018 was a historically bad year for bitcoin.
In an interview with Kitco News, crypto analyst Aaron Arnold claimed that the price of Bitcoin (BTC) is showing market sentiments similar to the bear cycle market of 2018-19.
As per the analyst, BTC price is hovering in a price range of $19,000 to $20,000. This is very similar to the 2018-19 trend when it was consolidating near $6,000.
Back in 2018 when traders and investors believed bitcoin’s bottom was in, the major currency continued to lose over 50%. Aaron highlighted that the risk of a repeat of a similar scenario is possible. Thus, he predicted that the price of bitcoin could drop towards the $11,000 to $14,00 level or even fall to $6,000 in the worst case scenario.
The analyst sees a number of factors hinting at a price drop. The factors include high inflation, dollar devaluation, sovereign debt crisis, OPEC oil production cuts, and also the fact that BTC is still highly correlated with stocks.
Trading volumes give hope for a sustainable market
However, on the other hand, trading firm Cumberland shared a report which mentioned that the market is still healthy despite the fall in prices with daily trading volume of over $50 billion.
As per a report, Bitcoin price could also be showing signs of decoupling with the stock market.
