Bitcoin Price Hit 13 months Low; Here’s What to Expect
Bitcoin’s price tumbled below the $5,000 level for the first time in the past 13 months as the crypto market crash intensified after some stable trading during the weekends. The largest coin was seen trading around $4,600 on Tuesday, losing 24% of its value in the past seven days alone.
After experiencing stable and steady price movement from September to mid-October, crypto markets plummeted at a massive pace over the last seven days. Though the market hasn’t experienced any fundamental change, the selloff was prompted by specific events related to Bitcoin Cash and the SEC.
Downtrend Could Extend
Traders and market pundits are expecting this bearish spell to extend the momentum, as BTC has broken several support levels in the past few days.
The cryptocurrency trader Altcoin Thoreau said, “Most indicators have bottomed out and reached new lows we haven’t seen for a long time on Bitcoin. Boom and bust cycles are nothing new for crypto, and I believe we still have some time to go before reaching the bottom.”
Willy Woo, the Woobull.com founder, has presented similar views about the cryptocurrency markets. He claims that the bearish cycle for crypto coins could continue during the first two quarters of the next year before seeing some stabilization by the end of 2019.
He stated,: “Until we see some new catalysts to change the trend we will continue the bear market into mid-2019. Bitcoin will capitulate or trade sideways while altcoins pump. Most of the gains made from alternative cryptocurrencies will flow into BTC, and by then Bitcoin should achieve its a bottom and begin an uptrend before the halving in 2020.”
Mati Greenspan, who is a senior analyst at eToro, has indicated a bleak outlook for crypto coins if the bearish pattern prolongs. However, he also suggested buying opportunities in the crypto markets after a huge selloff by saying, “The next logical level of support is at $5,000, but if that doesn’t hold, the next logical support level isn’t until $3,500,” eToro analyst Mati Greenspan said in a note to clients Monday.
The cryptocurrency markets generally respond quickly to market speculations, due to low regulatory control and the lack of fair value concept. Trades concerns over the BCH hard fork and SEC crackdown on illegal activities and outright fraud in the growing digital currency industry have added to the selloff. The market could move either way in the coming days. Therefore, investors should closely gauge all fundamental and technical movements.
What’s your opinion about the latest crash and how long do you believe the bearish trend will exist? Express your thoughts in the comment section below.