BTC Still Weak
Bitcoin is somewhat recovering on Tue Dec 4, trading at around $4,038, reports Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
On H4, there’s a midterm correction. The previous descending trend ended up converging and breaking out the resistance, then an uptrend reached 23.6% Fibo. The current descending move is an intermediate correction wave, which should end with the descending channel resistance breakout at $4,140. Then, another rising wave may start to take the price to 38.2% ($4,640) and 50.0% ($5,003) Fibo.
On H1, the short term descending trend was not able to reach the target support of the current channel at $3,590. This may mean the trend is somewhat fading out, and the price might get up to $4,140. If this is the case, the price may well head to the upper projection channel. The target of such upmove may be at $4,406.50, and then, at the target resistance at $4,555.
Overall, November has actually been one of the worst month for Bitcoin lately. The coin lost around 57%, while since early this year it has fallen by 218%. There’s nothing in particular that prevents the BTC from going higher; it’s rather that a chain reaction started, which made the crypto fall down heavily. Besides, there are no new ideas in the market to attract new capital flows, and thus the market cap is falling down, too.
Meanwhile, according to Bitcoin Block Bot, the Bitcoin network difficulty is decreasing. As of Dec 3, it fell down by 15% more, which is a 7-year low. The difficulty if calculated based on the overall computing capacity of the mining equipment. Basically, this means the miners are shutting their machines down as they see no potential in mining anymore. The mining equipment does not bring any profit; moreover, it brings losses, which is of course not what the users want.
The predictions regarding Bitcoin vary. Some say there’s a negative trend ahead, and one should start getting ready to it. Others say the interest towards blockchain projects is cyclical, and the current downtrend will be followed by a very sharp uptrend. Jim Breyer is among those who think so. he says cryptos are ready to exist in the ‘nuclear winter conditions’, but then will recover. Many great scientists are working with blockchain, he adds, and this means the interest, fundamentally, will appear.
Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex or Smartereum shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.