Could bitcoin dip below 12,000? Bearish investors speculate

Everything that goes up has to go down. And bitcoin is proof of this. The leader of cryptocurrencies is suffering from the law of gravity and the million dollar question is whether or not it has hit bottom. If you are a bearish investor and you think it can fall more, for example, to $12,000, this is where you should invest.

But first, why could bitcoin keep falling? Strategists Barry B. Bannister and Thomas R. Carroll of investment bank Stifel base their theory on what they call the recovery trade.

This has defined the bull market that we are experiencing and that, according to its forecasts, is now heading for a correction that will take place in the second half of the year. As a result, they see an 11% pull back in the S&P 500, the global benchmark, and a further decline in bitcoin to the $12,000 level.

If his prediction comes true, the most cyclical stocks (energy, financial, technology ...) will fall, in contrast to others such as health, consumption, utilities and real estate. This point and followed by the so-called 'trade' of recovery may take place, according to these strategists, due to a more abrupt fall than expected in the US manufacturing PMI in the second half of the year, in addition to a further strengthening of the dollar.

The stock market bunker proposed by Stifel in the face of this market turnaround that will inevitably create winners and losers is to invest in companies more focused on defensive industries: pharmaceutical and biotechnology, food and consumer, utilities, telecommunications, health equipment and services, brick ...

At the same time, investors should avoid the actions of banks, insurance companies, software companies, real estate, energy companies, semiconductors, automobiles, capital goods ...

THOSE WHO DEFEND BITCOIN

This is the case of StormGain, a leading international platform in cryptocurrency trading, which has launched the CryptoResearch 3.0 report. according to which the growth forecast of assets such as bitcoin estimates the maximum value of the cryptocurrency at$ 112,800 by 2022.

FALLS OF 47% FROM ITS ANNUAL AND HISTORICAL HIGHS

According to the technical analyst of Bolsamanía, J.M. Rodríguez, the leader of cryptos accumulates a collapse of almost 50% from its annual and historical highs. According to his latest analysis, the bitcoin 'hammer' suggests a market bottom will be seen.

Translated by Caoimhe Toman