In the last year, the sector saw issues with liquidity, bankruptcies, and the demise of Terra and FTX, and predictions that the price of Bitcoin will drop below $12,000 started to spread. The CNBC broadcaster Jim Cramer projected that the price of Bitcoin will fall to $12,000 shortly after the Terra crash in June 2022.
In 2022, the Fed started rapidly hiking interest rates to combat inflation, which impacted risky assets like Bitcoin. The worth of the whole cryptocurrency market reportedly decreased by $1.4 trillion last year as a result of dropping prices, according to estimates.
Given the course of the last year’s events, several predictions made at the start of the year projected that Bitcoin might decline as low as $12,000 before recovering once more. These predictions were wrong, as Bitcoin didn’t reach the anticipated $12,000 level but instead topped out at $31,000 in the first half of 2023.
Will Bitcoin crash to $12,000?
Although Ali does not completely rule out the possibility of a “black swan,” an unexpected event that goes beyond what is often anticipated of a scenario and may have serious repercussions, he believes that Bitcoin is less likely to go below the $12,000 level.
Ali claims that the chances are in favour of the bulls using on-chain data. This is due to the fact that more BTC owners purchased between $16,000 and $30,000 than between $31,000 and $42,000. Because the stakes are larger, it seems more sense that bulls would carefully protect the area between $16,000 and $30,000.
At the time of writing, Bitcoin’s 24-hour loss was 1.28%, falling to $30,354.
Glassnode, an on-chain analytics company, emphasises the significance of Bitcoin’s current trading locations. It claims that 592,000 Bitcoin are worth about $30,200 when purchased, which is close to the current market price.
This implies that minor price changes in either direction might cause 3.45% of the available supply to experience a gain or loss.
