November 19, 2018 | AtoZ Markets
Bitcoin slumps further to trade below $5000 the first time since October 2017. What could happen next? The following give insight based on technical analysis.
A lot can happen in a year. In November 2017, Bitcoin was very buoyant, climbed new highs and skyrocketed. Between November and December 2017, price gained more than 200%. ''If the bullish trend should continue in the following year (2018), price would hit between $50,000-$1,000,000'' was the thoughts of many. However, price has dipped instead, now trading at the same level it was pre-November 2017. BTC dropped from $19,800 to sink far below $5000 into the $3000-$5000 August-September 2017 range. Other cryptocurrencies have also lost significantly, Ethereum and ripple now trade at $135 and $0.45 respectively. Further dips would definitely see BTCUSD testing $3000.
Despite the current dip, BTC trade volume has increased significantly as sellers take advantage. According to data from CoinmarketCap, today's trade volume at $7.9 billion is almost double of last week's average. However, market cap has dropped by more than 25% from last week's average. Bitcoin still maintains 53% market dominance.
BTCUSD Technical Analysis and Important Levels
The bearish move is expected to continue unless a big bullish push happens. There is currently lack of confidence among many long term hodlers. By projection, a dip to $1500 is very much possible before the year ends or early next year. Below the August/September 2017 3000-5000 range, there is 1800-3000 June/July 2017 range. These are highly probable price levels that can be tested. Unless a fast rally happens back into the 5800-6000 zone, Bitcoin still probably has some digging to do and so are other Cryptos.
What are the next levels you identified? Please share with us in the comment box below.