While the Bitcoin price keeps declining, crypto analysts are expecting ‘more blood’ on the crypto market as BTC is likely to drop to $8,600,
The Bitcoin price has been declining after a brief rise towards the $10,000 mark. As one of the reasons for that some suggest the positive result of the trade negotiations between the US and China.
However, crypto analysts are predicting that the price of the flagship cryptocurrency may keep going down and hit $8,600-$8,800.
Currently, the price stands at $9,072 per BTC.
Image by Coinmarketcap
‘I’m expecting more blood’
The crypto trader from Twitter going by the name @ImNotTheWolf says that the Bitcoin price is likely to continue declining and he is expecting more blood spilt here soon.
In another tweet, however, he hoped for a brief rise to grab some profit on scalping. He remains positive anyway, saying that should BTC drop lower, he will merely increase his position in ‘digital gold’.
Will Bitcoin hit $8,600?
Another analyst, @CryptoMichNL, announces more specific figures for the possible Bitcoin price movement and forecasts a possible decline to the $8,600-$8,800 area.
The much-expected Bitcoin halving
Overall, despite the current Bitcoin red market, the community remains positive on the future of BTC price thanks to the approaching halvening in May 2020.
As a reminder, the rewards for BTC miners will be cut down in two. This will make Bitcoin more scarce and is expected to push its price well above the current level.
Key Indicator Signals That Bitcoin is Bottoming as Bulls Defend Key Support Level
Bitcoin (BTC) has continued slowly grinding lower as bears gain the upper hand over bulls, and sellers have now led the cryptocurrency down to a key support level that must be defended or else it will open the gates for significantly further losses in the near-term.
Analysts are now noting that technical indicators may point to the possibility that Bitcoin is in the process of bottoming out, but BTC’s inability to post any strong bounce at $8,000 may point to an underlying weakness amongst the crypto’s buyers.
Bitcoin Falls to Key Support Level at $8,000
At the time of writing, Bitcoin is trading down nearly 5% at its current price of $8,160, which marks a notable drop from its daily highs of nearly $8,600 that were set yesterday morning.
Today’s dip to lows of $8,000 marks an extension of the sell-off that first occurred when BTC fell below $9,000, which had previously proven to be a strong support level for the cryptocurrency.
BTC did post a slight bounce at $8,000 today, signaling that this is a near-term support level that could bolster the cryptocurrency’s near-term price action.
One interesting factor that may play into Bitcoin’s near-term price action is the fact that leveraged funding is currently positive, meaning that there is a premium cost to enter long positions, which makes short positions a better value proposition at the moment.
Big Chonis, a popular cryptocurrency analyst on Twitter, discussed this in a recent tweet, explaining that it is currently a better value to countertrade using short positions until the ongoing downtrend begins shifting.
“$BTC – ever since the late October pump, Leveraged funding has been positive meaning there has been a premium cost to enter LONG positions even while #bitcoin continues to retrace, until this goes negative it’s still a better value to countertrade short, until proven otherwise.
Technical Indicator Signals BTC May Be Bottoming
Despite Bitcoin’s bearish price action over the past few weeks, one technical indicator may be pointing to the possibility that it is currently forming a long-term bottom.
The Cryptomist, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, saying:
“$BTC: Don’t think it will be long until bulls in the short term take the wheel as RSI on various time frames look bottomed! I do think this will be short term, before further descend towards a final touch of wedge support.”
Bitcoin’s response to its support within the $8,000 region will likely provide deep insight into the current market structure, as a break below this level would point to underlying bearishness that could mean significantly further losses are imminent.
Novogratz Launches Two New Bitcoin Funds Targeting ‘Wealth of America’
Michael Novogratz’s crypto merchant bank Galaxy Digital is launching two Bitcoin (BTC) funds, targeting people between the ages of 50 and 80. The new funds aim to bring “the wealth of America,” or people who may have largely remained out of crypto investing, to cryptocurrency markets, Novogratz told Bloomberg Nov. 19.
According to Bloomberg, the funds will offer third-party custody from major crypto consortium Bakkt and Fidelity Digital Assets, the digital asset arm of American investment management company Fidelity Investments.
Galaxy Bitcoin Fund and Galaxy Institutional Bitcoin Fund
The two new Bitcoin funds — Galaxy Bitcoin Fund and Galaxy Institutional Bitcoin Fund — have reportedly been established with Galaxy’s own money and some participation from existing investors, according to the report.
The Galaxy Bitcoin Fund will require a $25,000 minimum investment, and investors will be able to withdraw their funds on a quarterly basis. Meanwhile, Galaxy Institutional Bitcoin Fund has weekly liquidity and a higher initial threshold, the report notes.
Both funds will reportedly charge lower fees than major Bitcoin funds such as the Grayscale Bitcoin Trust.
Boomers’ wealth is OK
Novogratz’s plans will ostensibly bring a significant amount of investment from older demographics as Bitcoin investment is specifically led by the tech-savvy younger generation in the 18–34 age range. Meanwhile, the share of American Bitcoin investors over 50 years old reportedly accounts for 3%.
According to a recent study from wealth management firm United Income, Americans under 50 only hold 16% of all investable assets, compared with 31% in 1989. This leaves a massive amount of untapped wealth among older investors that, according to United Income, will comprise $36 trillion in inheritances in the next 30 years.
Novogratz is ever the bull
Novogratz, a 54-year-old billionaire and known Bitcoin bull, claimed that there are probably 20 billionaires he could name that made their money outside of crypto and are in crypto now. He added that the new Bitcoin funds could attract investors who are now buying gold.
Additionally, Novogratz said he expects that traditional financial services companies will let users invest in Bitcoin in the next 12 months.
Earlier today, major Bitcoin fund Grayscale Bitcoin Trust filed Form 10 with the United States Securities and Exchange Commission to become the first crypto fund to report to the regulator. If the filing is approved. Grayscale could see its investor base widen, as more institutional investors will be able to dabble in Bitcoin.
Bitcoin Price Faces Deeper Dive as Bear Cross Confirmed
- A lack of positive developments in the crypto and blockchain space has led to fading sentiment and further declines in bitcoin’s price.
- A long-term bear crossover of the 100 and 200-day moving averages (MAs) confirms BTC’s latest leg down.
- BTC looks set to test the 100-period moving average on the weekly chart, now located at $7,520.
Bitcoin prices tumbled over 4 percent Monday as buyers proved reluctant to engage with the market, likely due to recent suggestions of a new crypto crackdown in China.
At press time on Tuesday, the world’s top crypto by market capitalization had dropped further, and was down 3.03 percent on the day. Bitcoin is currently changing hands at $8,144, according to CoinDesk’s Bitcoin Price Index.
Amid the lack of trader enthusiasm, two long-term moving averages – the 100 and 200-day – crossed over on Nov. 17, suggesting a long-term trend change in favor of the bears.
As seen above, a crossover of the two averages, whereby the 100-period moves below the 200-period, does not bode well for bitcoin’s price. Back in early 2018, a long-term bear cross saw prices fall by as much as 60 percent.
While past events are not indicative of future results, it does raise the question: how far can bitcoin’s value fall?
Further losses will expose prices to the 100-period moving average on the weekly chart, now located at $7,520.
With a lack of bullish fundamentals, bitcoin is deflating under seller pressure, as reflected in the daily and weekly RSI’s (not shown) which are in bearish territory beneath the neutral 50.00 line.
Selling volume has also risen to its highest in three days, adding to the credence of the downside move.
The bulls need to enter back into the fray in force if they hope to stem the bleeding, and need a firm close above $9,000 to reverse the current trend. For now, that seems a tall order.
Disclosure: The author holds no cryptocurrency assets at the time of writing.