"It has the potential to go up but it can also go down, what is your opinion as an investor?"
The cryptocurrency market is facing significant selling pressure after the United States (US) Securities and Exchange Commission (SEC) alleged that crypto exchange Kraken violated US securities laws by offering an unregistered staking program.
While US Federal Reserve (Fed) officials who intend to raise interest rates are also the cause of the price drop.
During the month of January, the crypto market saw a recovery as most investors started investing in the digital asset, but now the opposite has happened as the price has massively plunged again.
Prominent crypto analyst Michael van de Poppe shares an interesting analysis of BTC's price correction and when investors can buy it after predicting the digital asset is about to drop to $21,000.
The price of BTC which is now down by 0.33% hovering at $21,734 in the past 24 hours is still witnessing horizontal momentum, where the digital asset is said to be capable of plunging to $21,000 or up to $19,700 if there is negative sentiment.
Even so, the price of the digital asset is expected to climb massively past the $25,000 level after the drop and not forgetting the Consumer Price Index (US) data which may have a positive impact on the crypto market.
In the meantime, experts are very confident that BTC will make a short-term price correction first before collapsing, plus the digital asset always stands strong despite macroeconomic events except for inflation.
