Investing.com - Bitcoin had a solid bull run from March 14, when it was worth less than $37,000, to its 2022 high of $148,160 on March 28, but then hit a technical hurdle, only to post a sharp correction since yesterday afternoon, with the cryptocurrency back below the key support of $45,000 at the time of writing.
Remember that BTC/USD had failed to break above its 200-day moving average, currently at $48,310, knowing that just above this indicator is another at least equally important hurdle, the major psychological threshold of $50,000, as well as another important hurdle, as we pointed out yesterday before Bitcoin started to falter.
If the decline continues, the next potential support for Bitcoin will be the $42,000 area. After that, the psychological threshold of $40,000 will come into play.
VanEck describes a scenario where Bitcoin rises to $4.8 million
Apart from a technical context that has deteriorated significantly, yesterday was also marked by a forecast for the cryptocurrency from US investment firm VanEck that was ambitious to say the least.
According to a report highlighted on Twitter by one of its executives, the company estimates that bitcoin is twice as valuable as gold and could be worth $1.3 million to $4.8 million per unit if it becomes the world's reserve asset.
However, it is important to note that VanEck's analysts have stressed that they believe it is more likely that the Chinese yuan will become a new reserve currency, but that in any case, nations will likely reshuffle their holdings.
"Central banks are likely to change the composition of their reserves away from dollars (euros and yen) towards something else, to some extent or other... As a result, some central banks - and private players - will diversify their reserves."
And many experts agree that a certain proportion of these reshuffled reserves will include cryptocurrencies, and Bitcoin is the most likely candidate.
Bitcoin flounders; VanEck describes a scenario of BTC rising to $4.8 million.