As a result of bankruptcy events in crypto money companies, the downward trend in Bitcoin 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.” used the phrases. Bernardi’s company predicts Bitcoin price based on mathematical analysis that trains computer models based on previous BTC price data. Bernardi explained his thoughts as follows:
“Bitcoin is extremely repetitive in its halving cycle that happens roughly every four years and reduces rewards for miners. So basically we analyzed a lot of quantitative data about it and discovered a large 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’re scared, they sell. If they’re interested in BTC and they think Bitcoin can grow, they start buying.”
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 in the long run. Even during this downturn, user adoption is growing… which means that over the long term, BTC will continue to grow despite its huge volatility.”
Every four years, BTC goes through a ‘halving’ in which the block reward earned by miners is halved. The next halving will take place in April 2024.