'Final Desperation Wave' Might Drop Bitcoin Price to 'Mid-to-High $2,000s', Analyst Claims

Omar Faridi

Tim Kelly, the founder and CEO at BitOoda, a cryptoasset advisory firm, has said that “the final wave of desperation [could] take us” to a bitcoin (BTC) price in “the mid-to-high $2,000s.”

Bitcoin is currently trading at $3,604.85 according to CryptoCompare data - as the BTC price surged by almost 10% earlier this week (from around $3,400). According to Kelly’s analysis (shared with MarketWatch):

[BitOoda] expects the final wave of desperation to take us [to a BTC price below $3,000] before the market starts the recovery. We could be wrong, of course, and until the 2018 low is taken out (it has not been revisited yet), there is a possibility that the selloff is done.

Kelly further noted that he is expecting a downside target for bitcoin between $2,400 to $2,800, however a short-term rally might be able to take the BTC price back up to the $4,030-$4,300 price range. It’s even possible that bitcoin might find a “$5,600-$6,000 support level”, Kelly argued.

Predicting BTC Price Support At $3,530, Resistance At $3,750

Meanwhile, Twitter user DonAlt (@CryptoDonAlt), a widely-followed crypto analyst, noted via Twitter that “as expected, [bitcoin] is struggling with resistance.” Estimating a support level of around $3,530 while predicting resistance at $3,750, DonAlt mentioned that he’d be “going wick hunting somewhere between the two dotted green lines (pictured below).”

On February 4th, 2019, Murad Mahmudov, a prominent crypto analyst and widely followed market commentator on social media, pointed out that the number of bitcoin-related tweets had dropped to “the same level as 2014.”

Mahmudov added that it appears as if “nothing has changed” as the number of tweets about bitcoin are even lower than “at any point in 2016.” He also mentioned that “all the people, particularly in the Western world, obsessed with Bitcoin” including Pierre Rochard (the founder of Bitcoin Advisory), have already been in the crypto space for many years.

"Greed, Speculation" Are Biggest Drivers Of BTC Price

According to Mahmudov’s observations, “bull markets bring fewer new obsessed” crypto industry participants and “there are [even] fewer of them overall than I thought.” There are also significantly “fewer people” who may be interested in “decentralized sovereign”, deflationary currencies “for its own sake than you'd like to think”, Mahmudov argued. He remarked:

Cryptocurrency's biggest use case is speculation. That is a fact. For better or worse, speculation and human greed are your biggest hope.

While some analysts like Mahmudov maintain a bearish outlook, well-known Chinese cryptocurrency billionaire, Zhao Dong recently said it was a great time to buy bitcoin. He believes:

The people who [are currently] paying attention to bitcoin are obviously [a lot fewer] than the [number of interested investors during the] bull market, and ... naturally … the prices [are] low right now.

Towards the end of last year, Dong had predicted (on China’s microblogging social media platform Weibo) a bitcoin price of $50,000 by 2022.

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Tim Draper Calls Indian Government “Pathetic and Corrupt” Over Bitcoin Ban

  • Tim Draper calls the Indian government "pathetic and corrupt" over a proposed ban on cryptocurrency.
  • Unofficial drafted bill has emerged online making the use of cryptocurrency punishable with 10 years in prison.

American billionaire investor Tim Draper has called out the Indian government over its purported plan to ban bitcoin and all forms of cryptocurrency. 

Proposed Bitcoin Ban

On July 14, blockchain lawyer Varun Sethi published to Twitter an unofficial draft of a bill circulating the Indian government that would ban the use of cryptocurrency. 

In addition to prohibiting the use of bitcoin, the bill seeks to impose a 10-year prison sentence on Indian citizens who “mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies.” The bill does allow one caveat for the digital rupee, which is a token issued and backed by the Reserve Bank of India (RBI). 

Pathetic and Corrupt

In response to the proposed ban, Tim Draper took to Twitter to vent his feelings against the Modi government. 

Draper, who is known for his massive investments in Baidu, Skype, and Tesla, has become a bitcoin bull over the years, in addition to issuing some of the more far-fetched price predictions.

The American investor has also been an active presence encouraging developing countries to consider the benefits of bitcoin and digital currencies. More recently, he advocated the utility of bitcoin to the Argentine government, a country that has been combating fiat hyperinflation for years. 

Others Weigh In

Other high profile individuals have voiced their disapproval over the Indian government considering a bitcoin ban, including Barry Silbert who predicted the decision having the opposite effect on bitcoin adoption. 

John McAfee also chimed in with his belief that governments have little control over the use of bitcoin. 

Supporters of the Ban

However, not everyone took kindly to Draper’s harsh criticism of the Modi government. Given the rise in cryptocurrency-related scams over the past two years, some Indian citizens believe banning bitcoin will be a net positive for the country. 

While Draper may be stirring national sentiment related to cryptocurrency, it’s worth noting that the Indian government has yet to impose a ban of any sort. However, given the amount of rhetoric over the last several months and the more recent emergence of the drafted bill, it appears the Modi government is indeed contemplating decisive action against bitcoin and digital currencies.