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As Bitcoin (BTC) continues to retreat into the low-$90,000 range, analysts are divided on how far the top cryptocurrency can fall before a potential rebound. However, long-term market watchers remain confident, stressing that the short-term price action does not change their belief in BTC eventually rising to $1 million or more in the coming years.
Bitcoin will reach $1.5 million by 2035
Cryptocurrency enthusiast Timothy Peterson recently shared his predictions for X, predicting that Bitcoin will be on track to reach $1.5 million by 2035, based on Metcalfe’s Law. This forecast represents an increase of about 15 times its current price over the next decade.
For starters, Metcalfe’s Law states that the value of a network is proportional to the square of the number of its users, which means that as the number of participants grows, the utility and value of the network increases exponentially. In the context of Bitcoin, this suggests that its value rises significantly as more people adopt and use the network.
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Peterson is the author of the widely discussed paper titled “Metcalfe’s Law as a Model of Bitcoin Value,” which uses the law to explain the path of Bitcoin’s price. Known for his bullish stance on Bitcoin, Peterson has long argued that global Bitcoin adoption is inevitable. His paper says:
Traditional currency models fail with Bitcoin, but the various mathematical laws that explain network connectivity provide a compelling explanation for its value.
Peterson has also proven accurate in identifying major market trend reversals. For example, he said correctly It has been identified Bitcoin’s local bottom occurred in September last year.
Will BTC fall further before rebounding?
While Peterson rising The $1.5 million prediction is music to the ears of Bitcoin bulls, but the cryptocurrency’s current price action may make them uncomfortable. At the time of writing, more than $524 million has been liquidated It happened In the past 24 hours, with $136 million in Bitcoin alone.
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Cryptocurrency analyst Keith Allen commented on Bitcoin’s recent price movement, noting that “this decline is far from over.” According to Alan, selling pressure is effectively pushing the price down, as buyers appear to be waiting for lower levels to make large purchases. He explained:
It is clear that the sell side is trying to push the price down. It is not clear whether the buy walls are linked to the same entity pushing the price down, but what is clear is that they have no conviction in those price levels, and that some or all of that liquidity could move or bluff.
Alan identified $91,500 as a potential support level, with $86,500 as a secondary line of defense. He noted that there is more than $300 million of bidding liquidity within this range, making it likely that Bitcoin will rebound from these levels.
Alan also highlighted that a drop to $86,500 would represent a 20% drop from Bitcoin’s all-time high (ATH) of $108,135. However, if this support fails to hold, there is risk BTC slides further to $77,900 to fill CME gap.
On the contrary, cryptocurrency analyst Ali Martinez recently said Confirm That BTC could be on its way to $275,000 based on the formation of a cup and handle pattern on the weekly chart. At press time, Bitcoin is trading at $92,805, down 3.3% over the past 24 hours.
Featured image from Unsplash, charts from X and TradingView.com