The analysts recalled that bitcoin peaked at $38,000 in its “good week” – the highest level since May 2022. Now, even at the current level of $37,000, the average purchase price for short-term holders is about $30,380.
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“This means that the price could theoretically fall to the $30,000-$31,000 range,” Bitfinex experts wrote.
The report also notes the high volatility of the market. For example, bitcoin’s recent jump to $38,000 on Nov. 9 was accompanied by significant liquidations of $491 million.
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“We believe it would be prudent to exercise caution in the current environment,” Bitfinex added.
However, other experts are more optimistic. Amid news of a bullish rally in the bitcoin market, former CEO of cryptocurrency exchange BitMEX Arthur Hayes has made his own prediction – he believes bitcoin will rise to $1 million.
Analysts at Matrixport have predicted the first cryptocurrency to rise to $45,000 in 2023