Bitcoin is stabilizing, and so far maintains support at the level of $40k
As shown by the graphs and data on Coinmarketrate.com, the price of Bitcoin forms higher lows, but also lower highs.
Looking at the Bitcoin price chart, we see that BTC has stabilized after a precipitous fall on April 14. However, there are no signs of a clear trend reversal yet, as Bitcoin is confidently holding above the important support of $40,000.
Turning to the weekly chart, we see that the lowest point this week is at around $39,204 in cryptocurrency. At the time of writing, the price of Bitcoin is $40,350.
In the upcoming few days its will be important for bulls to hold the threshold of $40K. If we go lower, the downward momentum may take over. In short term prospective, $40 700 that is the next resistant level that bulls have to break for further upward recover.
Is this the bottom for Bitcoin?
The big question is of course about whether BTC is finally forming a bottom here from which the price can start moving up again. Although no one has a chrystal ball and no one can predict this, TechDev, a well-known crypto analyst, has noticed:
“We are seeing an inflection in the 90-day rate of change of the BTC wave 1 year + HODL. At the same time, the wave is at the record high level. Each of the last 5 times this has happened, BTC has not seen any lows”.
But, as always, we should not forget about the macro situation which still includes the impending recession. As TechDev says, “This is not a quarantee that new lows are not about to come”. This is a historical observation that helps to substantiate view of market asymmetry”.
3 expected BTC price forecasts
The price of BTC is perhaps the most discussed topic in the world of cryptocurrencies. In 13 years, Bitcoin has gone from a “useless” asset to a world-class financial asset. From digital currency, to a currency that, at the time of writing, costs $40,000 apiece. The big question, of course, is what the price of BTC will do in the long run. Have we experienced the biggest growth and are we moving towards a new “zero”, or are the real fireworks still ahead and in the future we will pay millions for Bitcoin. The honest answer is that no one knows, and we can’t say anything with certainty on this issue.
Let us discuss three possible scenarious for the price of BTC in 2024.
- The darkest scenario for BTC development.
Let us start from the darkest predictions for Bitcoin. As you may already know, the BTC poses a serious threat for governmental money. The absolute limitedness of Bitcoin has been one of the reasons for governments printing money for many years. While the purchasing power of fiat money is declining year by year, Bitcoin has been doing the opposite for thirteen years. It is possible that the threat for governments will become too great and they will decide to ban BTC en masse.
This chance is quite small as the game theory makes it very attractive to accept BTC when your opponents decide to ban it. Now we see this cautiously happening in the United States after the Chinese ban on BTC in 2021. But it is possible that all governments will conspire and ban it on the market, including black. In such a scenario, the digital currency is likely to lose a lot in value, and it is still unclear what will remain of it.
- BTC acceptance continues steadily
The most likely scenario is that the adoption of BTC will continue unabated. After MicroStrategy’s decision to put Bitcoin on its balance sheet as a reserve asset, a number of listed companies did the same. In 2021, El Salvador became the first country to do so. During Bitcoin 2022, it was announced that Madeira (Portugal) and Prospera (Honduras) were also moving in this direction, and that Mexico was considering the same possibility.
The absolute rarity of Bitcoin is likely to continue to attract individuals, companies and countries. If we continue in the same spirit until 2024, it is quite possible that Bitcoin will reach $100,000 by 2024. However, the market remains an unpredictable beast, and central banks with tight monetary policy can cause disruption in the work.
- Countries and companies compete in the adoption of BTC
In the most favorable scenario for the development of Bitcoin, they decide to accept the digital currency. Mexico’s rapid acceptance of this scenario may lead to its implementation. Mexico is one of the largest economies in the world and has the potential to attract many individuals and businesses to Bitcoin.
If this happens and if real madness comes before 2024, the price may jump to the mark 250 000 – 350 000 dollars. However, such a scenario is unlikely. Although, if there’s one thing we’ve learned over the last few years, it’s that anything is possible.
80 million people now have access to the Bitcoin Lightning Network
BTC as a network allows users to send peer-to-peer (P2P). P2P means that there is no central party to process the transaction, as a bank or payment provider does with traditional payment methods. But Bitcoin’s baseline isn’t exactly fast. The Lightning Network (LN), however, still allows you to send transactions with BTC quickly and cheaply. LN has been showing unprecedented growth in recent months.
Arcane Research, a research company, is constantly researching the growth and development of LN. The scaling solution is a kind of second layer on top of the blockchain. Transactions between parties at this second level are not processed directly in the blockchain, so they are not limited by the capabilities of the main Bitcoin network. Many believe that LN can open the doors for mass adoption of Bitcoin.
Arcane Research reported that last summer only 100,000 people were able to access transactions on LN. By March, however, this figure had grown to a staggering 80 million, with the largest increase provided by the introduction of the Cash App. That’s not all. The number of actual transactions is also actively growing.
Arcane Research also tracks how many transactions are actually going on. To get an honest picture, the researchers excluded transactions that may be related to deposits and withdrawals from trading platforms such as the Bitfinex exchange.
The number of remaining transactions increased by 480% compared to a year earlier. Perhaps this growth is not entirely surprising, given the growing number of parties accepting LN payments. In addition to numerous cryptocurrency companies, we also find names such as Subway and McDonald’s in the list.