Friday proved to be tough for the Bitcoin investors as the world’s largest cryptocurrency hit its new 2018-low. According to the one-day chart on CoinMarketCap, slipped below $3300 making a low of $3280.23 on Friday, December 7. The overall crypto market seems to be weak at this moment with volumes drying up.
After making a new low yesterday, Bitcoin has recovered by $100. It looks like yesterday’s price slip was a knee-jerk reaction to the SEC postponing VanEck Bitcoin ETF approval to Feb. 2019. At the press time, Bitcoin (BTC) is trading at $3401, down by less than 1% with its market cap going below $60 billion. Also, it still continues to dominate more than half of the overall cryptocurrency market.
Last week, Bitcoin made a good recovery post the confirmation of Nasdaq Bitcoin Futures arriving by first-half of 2019. The cryptocurrency surged to over $4000 on November 29 but somehow failed to hold up those levels for much time.
Even earlier this week, it made a marginal recovery to $4000 trying to make a new base there. But again it failed to show enough strength and lost 15% since then. The most imminent question in the minds of the investors is where is Bitcoin heading now?
Mid-Term Forecast for Bitcoin
Last week on December 2, independent crypto analyst Willy Woo presented some interesting charts giving a mid-term forecast for Bitcoin. Woo predicts the “final capitulation for Bitcoin and a decisive end to the 2018 bear market.
Be aware the above scenario is contingent on a bounce upwards to test low 5000s. Currently the short term price action is consolidating into a wedge with hidden accumulation (according to the OBV indicator), this suggest there is more probability of an up move from here. pic.twitter.com/p40jgCtdZf
— Willy Woo (@woonomic) December 2, 2018
In his further series of tweets, Woo said:
“…We can expect more range bound sideways action, followed by final capitulation, and an end of the bear market earlier, around Q1 2019. If capitulation has indeed happened then we would be in an accumulation phase right now. But the key signs of this have not happened.”
Experts’ Opinions on Bitcoin
A number of crypto-market analysts have been speaking on Bitcoin over the last few months. Largely, most of the Bitcoin loyalists and enthusiasts also continue to believe in its long-term future despite this year’s price crash. CoinCorner’s co-founder and CEO, Danny Scott, told Express.co.uk: “If we look back over Bitcoin’s short 10-year history, it has experienced many price fluctuations – something that is to be expected given that the industry is still very young. He further adds:
“It’s widely known that Bitcoin has allegedly ‘died’ more than 300 times to date. This ‘death’ refers to predictions from critics that bitcoin won’t survive the changing price movements – yet it hasn’t died on any of those occasions and, instead, has continued to gain mass adoption.”
Danny Scott gives a further sneak-peek into the historical price movements of Bitcoin saying:
“There have been a number of sizeable price movements over the years which have typically gone unnoticed by anyone except those within the industry. For example, in 2013 we saw the price drop 49.88 percent in just 14 days, which is a bigger drop than the one we have experienced over these last two weeks. By looking at bitcoin’s historical price movements, we can all clearly see that price movements such as the most recent in November, are nothing out of the ordinary for the bitcoin industry.”
Mati Greenspan, a senior crypto analyst at eToro, believes that Bitcoin for some time will show price movement between $3000-$3500. He said: “I’m hoping there will be a Santa Claus rally especially now that we’re looking at the entire year as one defending triangle on the charts and we’ve now broken out of the triangle and hopefully bitcoin’s got it out of the system now.”
Bigger Price Fall Still Ahead Says Bloomberg Analyst
Earlier this week, an in-house analyst at Bloomberg, Mike McGlone predicted some more bloodbath happening. McGlone believes that “Bitcoin is caught in a strong selling trend”. Thus he predicts Bitcoin dropping more than 50% from the current levels to make a low of $1500. He said:
“[This trend] is its most pronounced since the sell-off it underwent mid-year, when the price tumbled from about $9,300 in May to around $6,600 in. July, according to the Directional Movement Index. If that plunge is an indicator of how things might play out, then Bitcoin could be in for a continued rout. “There’s little to prevent fading Bitcoin prices from reaching the continuous mean of $1,500. A rush to the exits among investors seems to be in place.”
McGlone also points to the Bitcoin Cash split last month which went out on a pretty ugly note. The two resulting camps were battling out to gain dominance over the network making things murkier. He adds:
“The hard fork was a key trigger that signaled the technology is way too nascent. You had these dicey characters threatening to destroy each other and institutions said ‘It might be best if we stay away from this for a while.”
Not just Bitcoin, but a majority of the altcoins are more still today except for Ethereum. Yesterday, Ethereum’s core developer team confirmed the launch of Constantinople hard fork in mid-January bringing the much-awaited upgrades to the long-time ailing cryptocurrency. In response, Ethereum has made 4% recovery since yesterday, at the press time.