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Is there a limit to bitcoin price and when can we expect deep correction?

Margareth Nail

Every day throughout 2017 the price of bitcoin increased by an average of 1%. In total, bitcoin has increased 15.5 times over the past year. No asset can boast of such a huge growth. Bitnewstoday.com asked the experts about potential limits of bitcoin's rally and talked about possible correction.

What peaks bitcoin can reach?

Bitcoin's potential price ceiling is considered by many experts a million-dollar question. Few people dare to predict the possible limits of the world's largest cryptocurrency, since there is no reliable methodology for calculating the maximum price of bitcoin. There are different levels that can burst bitcoin bubble as experts predict. Some believe that the maximum possible price of BTC is $100,000, while others go even further by calling out figures like $400,000. Moreover the bravest specialists speak about $1,000,000. However, when exactly bitcoin will reach its limit no one can say.

Stepan Morozov, Senior Researcher at RANEPA, believes that at this stage, bitcoin still has a room for speculative "heating". However, when the number of those who want to earn on bitcoin grows significantly, there will be an overdemand, and in that case it will undergo a serious correction.

No matter how much people keep talking about a bubble, in the near future bitcoin's exchange rate will go "only upwards", believes Dmitry Matsouk, the founder of Blockchain.ru."Next year, the market can see BTC surpassing a mark of $40,000 for BTC," Matsuk says. According to the expert, the appearance of institutional investors on the market will contribute to the growth of bitcoin in the near future. "Many of them have "long" money, so they will play for the long term and keep coins, which will move the cost of bitcoin upwards," the expert predicts.

Will bitcoin price fall down in the near future?

In the near future, as experts believe, a significant correction of bitcoin price is highly unlikely. However, it may fall down by a few percents. According to some estimates, correction will occur at the end of December or early next year. Due to the fact that the big players may wish to take profits before the New Year and to place new orders, the rate of BTC can fall by 10-20%.

“Before the holidays the number of ICO tends to reduce, and as a result, less investors take part in ICO projects, which can negatively affect the value of bitcoin. In addition, there are reports about the strengthening of the Chinese cryptocurrencies, such as NEO and others, that can also lead to a decrease in exchange rate of bitcoin,” suggests the founder of blockchain platform FREED Eugeniy Glariantov.

The price of bitcoin will not fall below 12 thousand dollars, says co-founder of blockchain-project VRT World Dmitry Livshin.“Demand for futures is something that can fuel the market. Some exchanges are competing to be the first who launches futures, what fuels the market as well. Despite the news about bitcoin futures ban in South Korea, the exchange rate of bitcoin is steadily growing," - says the expert.

Vladimir Smerkis, co-founder of The Token Fund expects bitcoin to fall to 10 000 - 11 000 dollars. The expert also believes that the launch of the futures is heating up the market. “The launch of the futures will be a milestone for professional traders and leading hedge funds entering the crypto market. The futures will allow the major players to earn not only on the growth of BTC, but also on short positions (sales). Short positions on BTC (Bitcoin) now seem logical and justified since they are determined to master the new financial instrument. BTC is already very hot and even overheated. However, at any moment there can be a situation similar to Bitfinex and Tether case. News about tests of the new network version of Lightning add fuel to the fire,” says the expert.

If the price of bitcoin will continue to grow on average 1% a day, then by December 31, the rate could surpass the level of 19 000 dollars. However if the rate of BTC will rise with the same pace as it was in November and early December, by the New year BTC will be worth $25500. However, any forecast is speculative and it is difficult to predict how this brand new digital asset will behave.

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