Cryptocurrency As a result of bankruptcy events in companies, the downward trend in Bitcoin (BTC) continues.
Bitcoin is currently trading around $16,500, but Daniele Bernardi, CTO of Digital Wealth, has suggested that the price will drop further.
“$14,500 looks like a bottom, but I guess only for a few days,” Bernardi said. There may be a return to growth next year.” said.
Bernardi’s company predicts Bitcoin price based on mathematical analysis that trains computer models based on previous BTC price data.
“A Cycle Happens Every Four Years in Bitcoin”
Bernardi explained his thoughts as follows:
“Bitcoin is highly repetitive in a halving cycle that happens roughly every four years and reduces rewards for miners. So basically we analyzed a lot of quantitative data on that and discovered a big pattern in these movements.”
Bernardi said that his approach is not only “technical” but also relies on “behavioral” components to predict future price movements:
“Bitcoin has a hard time finding a price at its true value because for most people, that price is about emotions. If they are afraid, they will sell. If they are interested in BTC and they think it can grow, they start buying it.”
However, he added that there are discernible patterns and drivers behind the BTC price:
“In our research published in CoinTelegraph, we discovered that Bitcoin pricing is driven by demand over the long run. Even during this downturn, user adoption is on the rise… which means that over the long term, BTC will continue to grow despite its massive volatility.”
Every four years, BTC experiences a ‘halving’ in which the block reward earned by miners is halved. The next halving will take place in April 2024.
*Not investment advice.
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