Bitcoin Price Crashes Below $3400 to Set New Yearly Low

December 07, 2018 AtoZ Markets  Bitcoin has experienced a sudden price drop over the last 24 hours, as the coin dipped from highs of $3,874 early on December 6 to a record-low for 2018 of $ 3,339.51 on December 7, according to CoinMarketCap

Bitcoin has started to hit a period of relative stability after a volatile month of trading in November. The coin has now hit its lowest point in 2018. The total market cap of the entire crypto-market is nearing $100 Billion. 

At the time of press, Bitcoin price is trading at $3444 mark with a 24 hours volume of $ 666.44 Million. Since the last month, the price of the coin has dropped by 47.28% with a total volume of over $ 14.99 Billion. The highest price of the coin, $ 6,559.57, was on 07 November 2018 at 08:00 GMT while the lowest price, $ 3,339.51 was on 07 December 2018 at 02:00 GMT.

Of the Bitcoin's recent volatility and regulation, GlobalBlock’s Angus Campbell said:

“Many are still hoping that possible good news from the SEC will come shortly with respect to a crypto Exchange-traded fund (ETF) to give BTC a much-needed boost and kick start, but there is a growing feeling that the decision may not be as ground-breaking as some think."

“A sign-off of a bitcoin ETF will open the market up for further ETFs to be agreed and there are many that see a direct correlation to what happened to the price of gold once the first gold ETF was established i.e. a long bull run.”

US SEC pushes Bitcoin's ETF to February 2019

The US SEC yesterday released an update stating that it is pushing its decision on the VanEck Bitcoin ETF to February 27, 2019. The proposal was first forwarded by money manager VanEck and blockchain startup SolidX, who partnered with the CBOE exchange earlier this year. As per the update, the SEC has received over 1,600 comments on the proposed rule change which would enable the launch of the Bitcoin ETF. Clearly, the SEC is taking its time to ensure all feedback that has been considered.

Under SEC rules, a decision on the proposal cannot be delayed any further, meaning the next notice must either approve or reject the ETFs.

Bitcoin Technical Analysis

Looking at the charts, after forming a short term support near $3,550 level, there was a tiny recovery in Bitcoin price against the USD. The BTCUSD pair traded above the $3,750 level, but upsides were capped near the $3,845 level. Finally, there was a fresh decline and the price traded below the $3,550 and $3,420 support levels. It is now trading well below the $3,500 level and the 100 hourly SMA.

Moreover, a new monthly low was formed at $3,288 level and the price of the coin is currently consolidating losses. An initial resistance is the 23.6% Fibonacci retracement level of the last drop from the $3,849 highs to $3,288 lows. However, there are many resistances on the upside near $3,550 and $3,555 levels. The previous support near $3,550 is a major hurdle. It coincides with the 50% Fibonacci retracement level of the last drop from the $3,849 highs to $3,288 lows. Moreover, there is a major bearish trend line formed with resistance at $3,700 on the hourly chart of the BTCUSD pair.

In conclusion, Bitcoin price is clearly placed in a highly bearish trendline below $3,500 level. As long as it is trading below $3,750 level, there could be more losses. The next target for sellers below $3,250 might be around $3,000 mark or even $2,800.

Bitcoin Daily Pivot Points

Bitcoin price has a significant daily support near $3,388 level and resistance near $3,800 level.

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