This year started with a bloodbath when all cryptocurrencies started shedding off their December 2017 gains. The prices were stuck in a descending channel for so long that it became difficult to see past the bears. For two months (September and October) the price volatility of Bitcoin dropped significantly. What this means is that the price remained relatively stable. Even if it wasn’t on a bull run, investors were comforted by the lack of volatility which is typical a sign of a maturing market. Unfortunately, the volatility increased this month when the Bitcoin Cash fork started and Bitcoin fell from $6300 to $5500 within a 24 hour period. As expected, other cryptocurrencies followed.
Bitcoin (BTC) Price Analysis
During the bearish market, many experts predicted that things would turn around before the end of the year. With the current situation, will Bitcoin still be able to beat the bears this year or will the downward rally continue into the new year? Within the last 24 hours, Bitcoin has been hovering around the bottom of a descending channel. It has neither bounced back or fallen lower. If it bounces back, the price will most likely rise to $6,200 this week.
Bitcoin (BTC) Price Today – BTC / USD
The fibonacci retracement is at 61.8% and close to the resistance. This point is also close to the moving averages. The 200 simple moving average is above the 100 simple moving average showing that downside holds the path with least resistance. There is a gap between these moving averages that is getting wider every hour. This shows that there is still some selling pressure in the market.
If the price of BTC should break below its current consolidation level, it may start falling lower into the $5200 level. This is because the price action has all the bearish signals you can think of. The Stochastic oscillator is currently pointing down to show that the sellers are coming back to the market and it is ready to hit the overbought region. This means that even if the bears don’t have lots of steam, they are eager to gather momentum soon.
What Hope Is There For Bitcoin And The Industry?
Following last week’s events, what do you think the future holds for Bitcoin? Well, the chances of a major rebound this year looks unlikely as it may take months for the damage caused by the Bitcoin Cash hard fork to be resolved. Notwithstanding, the cryptocurrency market is unpredictable so there is still the chance of an unexpected break before December comes to an end. Some investors are using this opportunity to buy and hold while they wait for the break. Even if a bull run doesn’t start this year, there is still a high possibility of one starting next year.
Some industry leaders are changing their initial end of year BTC price predictions. Fundstar’s Tom Lee who initially predicted that Bitcoin (BTC) will trade as high as $25,000 before the end of the year recently changed his prediction to $15,000.
At the time of writing, Bitcoin was trading in red against the USD at $5,468.47. This shows that it is down by 2.45% against the USD. The trading volume over a 24 hour period is $4,428,678,784 and the market capitalization is $95,060,681,025. Do you think BTC can trade as high as $15,000 before the end of this year?