Where is Bitcoin headed? Market analysts are confused

It’s unclear where bitcoin prices are headed, market analysts say.

Although some analysts described the overall bearish trend of the Bitcoin market to Coindesk, other observers are more optimistic about the future price development of Bitcoin. According to the Coindesk Price Index, the price of Bitcoin has recently fluctuated mainly in the price range of $1,010 to $1,060.

Although Bitcoin prices hit an all-time high of more than $1,300 earlier this month on the eve of the SEC’s ruling against brothers Cameron and Tyler Winklevoss’ Bitcoin ETF, Bitcoin has fallen since then. Interestingly, Bitcoin’s price barely moved yesterday after the SEC announced its rejection of SolidX’s Bitcoin ETF.

Other market watchers say sentiment has been mixed in recent days, with much of the market’s attention seemingly shifting to the prospect of a potential bitcoin fork — and the tensions that could ensue.

Charles Hayter, Founder and CEO of CryptoCompare, said:

“The market has seen the focus of Bitcoin shift from the anticipated approval of a Bitcoin ETF to the ugly internal struggle.”

The headache of bifurcation

Some analysts have pointed to this ongoing struggle while giving their overall bearish view of the market. A lingering concern is that a Bitcoin fork could significantly depress the price of Bitcoin, prompting some to hedge their bets.

According to cryptocurrency fund manager Jacob Eliosoff, this is the main driver of the pessimism.

He told CoinDesk:

“Bitcoin is a very raw market right now: the price is falling because there’s a civil war going on in this development project.”

However, not everyone agrees with this assessment. OTC trader Harry Yeh offered a more realistic outlook, arguing that Bitcoin’s upside has been caught.

He said:

“We think the price of Bitcoin is going to be as low as it is and we cannot foresee a significant increase in the price above $1,200 in the short term .”

Tim Enneking, chairman of Crypto Asset Management, expressed similar sentiments, telling CoinDesk that “hard fork issues are limiting Bitcoin’s upside.” However, he also stressed that “solid Bitcoin fundamentals, interest and growth potential” are creating a foundation for Bitcoin’s price.

Despite Enneking’s modest assessment of the situation, some analysts insist that Bitcoin’s long-term trend remains bullish. Arthur Hayes, co-founder and CEO of leveraged trading platform BitMEX, said Bitcoin’s recent price pullback is a “normal price correction.”

He also said:

“The additional uncertainty of a potential hard fork is like a dampener on prices.”