Bitcoin price is trading below the $5000 mark after the sharp sell-off in the cryptomarket. What to expect from Bitcoin price by the end of the year 2018?
November 20, 2018 AtoZ Markets - Bitcoin price has slipped under $5,000 for the first time in 2018, according to CoinMarketCap. In fact, BTC hasn’t seen these same price levels since October 2017. And while Bitcoin’s price has risen back above the $5,000 matter, it continues to flirt with the line, leading some to wonder if the support at such a firm number will hold up.
The bear market of 2018 continues to sting crypto investors. Several cryptocurrencies lost more than 95% of their value and the whole crypto market lost over 80% of its value since the beginning of the year.
What's Next for Bitcoin?
At the beginning of the current week, Bitcoin experienced another hard drop. Prices of most of the virtual currencies plummeted even further to new lows this year. This is what happened with both Ethereum and Bitcoin.
This Bitcoin price drop is currently making investors challenge 2018 assumptions. While several experts are still making bullish calls for Bitcoin price. However, it looks like several support channels for Bitcoin have slipped out and caused new bottoms. Furthermore, for the short term, the landscape remains bearish.
At the time of press, Bitcoin price is trading below $5,000 level, while its market capitalization is $86 billion dollar in according to coinmarketcap.
Technical charts suggest that Bitcoin is in a highly bearish zone now. Bitcoin has formed a swing low at $4,296 levels and corrected higher. It moved above the $4,800 level, but upsides were limited. Traders might face a huge resistance to take the price to the upper level. The price of the coin also failed to climb above the 23.6% Fibonacci retracement level of the last decline. As a result, there was a fresh decline and the price declined below the $4,296 levels. The BTCUSD pair even broke the strong supports due to huge sell-off.
In conclusion, the price is likely to accelerate losses towards the $4,200 and $4,000 levels. However, by the year-end of 2018, the price of Bitcoin might jump higher from this level and could trade in the range of $5000-$5500 levels.
7Marketz's Chief Currency Strategist, Yury Safronau's analysis for Bitcoin and Ripple price.
- Can we expect a massive rally in the crypto market by the end of the year 2018?
Yury: Looking at bitcoin chart you can see two spikes. First happened back in 2013, when bitcoin rose from 100$ to 1200$. And second one took place in 2017 when the coin rose from 4000$ to 20000$. Both of those spikes happened by the end of the year (from October to January). Partially that is why many analysts expect crypto market to rally once again by the end of 2018.
But in order to understand why those spikes happen you have to look for reasons in a particular moment. Back in 2013 bitcoin was substantially undervalued, in 2017 there was big hype about blockchain technology and pretty much any cryptocurrency or ICO token were growing significantly. Right now, crypto market is in more mature state than it was one year ago, so I would not expect crypto market to rally by the end of 2018. Some crypto currencies may appreciate, some may fail. But overall, I don’t expect crypto market capitalization to change substantially by the end of 2018.
- What are your expectations for Bitcoin and Ripple prices by the end of the year 2018?
Yury: Ripple price appreciated twice in last two weeks. This happened partially why the currency is adding new clients, among which are world know banks. Many financial companies are using XRP to transfer money from different parts of the world. This may be the reason why XRP is still undervalued. In future, if currency accumulates more and more clients to its structure, XRP can increase its market capitalization substantially in coming months.
Regarding bitcoin, I personally do not expect any significant price changes by the end of 2018.
- Do you believe that Ripple will surpass Bitcoin’s market cap in future?
Yury: I seriously doubt that XRP can surpass BTC market cap in the nearest future. Although if Ripple adds newer and newer clients to its structure, its value can grow significantly an possibly approach bitcoin market capitalization.
Bitcoin Pivot Points
Bitcoin price has a significant monthly support near $5200 levels and resistance near $7,300 levels.
Think we missed something? Let us know in the comments section below.