As Bitcoin (BTC) continues to pull back into the low $90,000 range, analysts are divided on how far the major cryptocurrency could go. fall before it goes out. However, long-term market observers remain confident, stressing that short-term price action does not change their belief in BTC's eventual rise to a million dollars or more in the coming years.
Bitcoin to reach $1.5 million by 2035
Timothy Peterson, a digital currency enthusiast, recently shared his projection on X, predicting that Bitcoin is on track to reach $1.5 million by 2035, based on Metcalfe's law. This forecast represents a nearly 15-fold increase from its current price over the next ten years.
For those unfamiliar, Metcalfe's Law states that the value of a network is proportional to the square of the number of users, meaning that as the number of participants grows, the utility and value the network increases suddenly. In the context of Bitcoin, this suggests that its value increases significantly as more people adopt and use the network.
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Peterson is the author of the widely discussed paper entitled “Metcalfe's Law as a Model for the Value of Bitcoin”, which uses the law to plot the price path of Bitcoin. Known for his supportive stance on Bitcoin, Peterson has long argued that global adoption of BTC is inevitable. His paper says:
Traditional currency models fail with bitcoin, but various mathematical laws that define network connectivity offer a strong explanation of its value.
Peterson has also demonstrated accuracy in identifying key market trends. For example, it is correct recognized The local base of Bitcoin last September.
BTC to go further before bouncing?
While Peterson bullish A $1.5 million prediction is music to the ears of Bitcoin bulls, the current price action of the cryptocurrency may leave them uncomfortable. At the time of writing, there has been over $524 million worth of liquidation happened in the last 24 hours, with $136 million in BTC alone.
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Crypto analyst Keith Alan weighed in on Bitcoin's recent price movement, saying “this dip is not done dipping.” According to Alan, the sell side pressure is actively pushing the price down, with buyers apparently waiting for lower rates to make large purchases. He explained:
It is clear that the selling side is trying to push the price down. It is not clear whether the purchase walls associated with the same entity push the price down, but what is clear is that they have no conviction for these price levels, and some or all of this liquidity transfer or spoof.
Alan identified $91,500 as a potential support level, with $86,500 acting as a secondary line of defense. He noted that there is more than $300 million in bid liquidity within this range, making it likely that BTC could return from these levels.
Alan also pointed out that a drop to $86,500 would represent a 20% decline from Bitcoin's recent all-time high (ATH) of $108,135. However, if this support fails, a danger of BTC sliding further to $77,900 to fill the CME gap.
On the other hand, crypto analyst Ali Martinez recently pressure that BTC could be on its way to $275,000 based on the cup and handling pattern formation on the weekly chart. At press time, BTC is trading at $92,805, down 3.3% in the past 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com
