November 22, 2018 | AtoZ Markets
Despite Wednesday's 15% bounce, some analysts expect Bitcoin to drop further as price gets attracted to 2017 support levels.
Bitcoin resumed the year-long bearish trend last week with a quick 18% drop. It continued this week after breaking below $6000 and $5000 psychological support levels. Yesterday, BTC dropped and almost hit $4000 to trade at the lowest price since August 2017. BTC market cap has also dropped by nearly 25% since the bearish trend resumed last week.
On Wednesday, the crypto market breathed a bit after price was supported at $4000 and followed by a 15% bounce to $4600. While the market has stabilized a bit between yesterday and today, predictions and opinions have not stopped flying from different sections and perspectives. The fundamental reasons still see so much 'bearishness' surrounding the market and therefore calling for more dip. There was also a prediction that price would hit $15000 because Bitcoin has ''never sustained a move below breakeven price ($7000)''. From technical angles, price might hit the base of the $5000-$3000 range (at $3000).
BTC may suffer more losses: technical analysts
Some technical analysts also predict that Bitcoin's failure to mount a strong recovery after suffering such a huge loss could indicate further bearishness.
Unless we see a strong move up quickly to retest the $6000 breakdown level (2018 prior low), the volume on these drops makes a retest of current lows likely
Pearlstone, taking note of the next support levels added:
If price drops below $4000, the next and possibly ultimate target for Bitcoin will be $3000 which is a full 100% retrace of the 2017 move that led to BTC reaching all time highs near $20000
The senior market analyst for eToro, a social trading platform also added to the pool of bearish opinions:
''Today, we bounced off $4,250, which i thought was pretty refreshing'' he continues ''if we go lower, the next area of support isn't until $3000 to $3500''
Unless a fast move happens into the $6000-7000 zone, we might see further declines to $3000 if price dips below $4000 after the current bounce.
How high do you think the current bounce will go? Please share with us in the comment box below.