According to one source, the bitcoin sell-off is showing no signs of calming down, but this might not necessarily affect the currency in a negative way.
Will Bitcoin Survive the Sell-Off?
As we all remember, bitcoin has had a very mixed two months in both October and November. Things ultimately started in late September when Bakkt – the institutional crypto trading platform owned and governed by the Intercontinental Exchange (ICE) – made its official debut on September 23. Despite nearly a year of hype and hoopla, this failed to make any serious headway in the crypto space.
The platform experienced a very dismal opening weekend, trading less than 75 bitcoin futures contracts within the first two days of business, and as a result, bitcoin’s price suffered heavily, dropping from about $9,500 to just over $8,100 in a matter of minutes.
Things didn’t quite stop there, however, as in October, news of Mark Zuckerberg’s testimony regarding Libra before a Senate panel proved too much for many of the crypto world’s top enthusiasts. Bitcoin then took another hit, dropping a further $800 in just a few days and falling to the $7,400 range.
From there, a positive turn began to make an appearance. Bitcoin experienced solid gains after Chinese president Xi Jinping commented that blockchain was a powerful technology capable of revamping the country’s infrastructure and economy. Bitcoin exploded back into the mid-$8,000 region from there, but it later jumped back to $10,000 (briefly) after Bakkt experienced a sudden surge of business that saw it trading millions in bitcoin contracts.
Bitcoin eventually settled back into the mid-$9,000 range, where it stayed for some time, only now, it has incurred several additional losses which have brought it back down to $7,300 at the time of writing. While this is $100 higher than where it stood over the holiday weekend, it’s still quite low by comparison.
Technical charts suggest that bitcoin is still being sold off in droves, and many enthusiasts are running out of patience as of late when it comes to holding their crypto. Chances are, they want to cut their losses short and sell off their stashes before any more bearish behavior can take place, but the charts do suggest that we’re likely to see even more trading as bitcoin continues to incur losses, which could ultimately reverse the bear process by providing bitcoin with further activity.
China Is Making Things Hard
Dan Matuszewski – a principle at CMS Holdings – also suggests that perhaps business in China is potentially affecting the cryptocurrency as well. He states:
The big narrative is around what’s going on China. What you started to see is China cracking down on a lot of the elements of crypto that have been operating inside the country.
Despite everything, bitcoin is nearly $200 higher than its lowest Monday point of just over $7,160.
BITCOIN (BTC) IS REPORTEDLY POISED FOR A MASSIVE BREAKOUT
Today, the crypto market looks bloody again with all the coins trading in the red at the moment of writing this article.
Despite the huge volatility of the market, there have been lots of optimistic-crypto-related predictions lately.
Now, a crypto analyst known as The Cryptomist said that BTC might be poised for a massive surge, which will take place sooner than you would expect.
BTC is in an ascending triangle
The analyst says BTC appears to be in an ascending triangle and could break out in a matter of days.
“A possible ascending triangle to look out for Like I have been saying for the past week and a bit. I am favoring longs right now, (however, the possibility of one more move down for bears)…” according to the analyst, as cited by the online publication the Daily Hodl.
The Crypto mist continues and explains that “Targets from last week remain the same: – 7700 – 8450 – 9400 Not long now.”
The crypto market could actually be more bearish
The online publication mentioned above also brought up another important crypto analyst known as Magic, who said that things are a bit more bearish, according to his vision.
He agreed that BTC might be getting ready to move to the upside in the short term, but he said that the coin would remain locked in retracement for the foreseeable future.
“BTC and the others may try for an upside breakout in the coming days. However, if BTC puts in yet another lower high, it will likely breakdown below the recently contested critical support at 7250,” according to Magic.
The analyst said that we might see a short term reversal, “but BTC remains in a bear market downtrend.”
Someone who responded to magic said the following:
At the moment of writing this article, BTC is trading in the redand the most important coin in the market is priced at $7,374.30.
If Bitcoin Price Closes Under $7,400, Strong Drop Could Follow; Here’s Why
Bitcoin has finally started to show some signs of weakness after stagnating above $7,500 for days on end, recently dipping under the key support in and around $7,400. As of the time of writing this, the cryptocurrency is trading for $7,350 on many major exchanges, posting a 2% loss in the past 24 hours.
While a 2% loss doesn’t seem decisively bearish, a leading analyst has said that a loss of the $7,400 price level, which currently doubles as the 100-period simple moving average for the four-hour chart, could imply that a strong drop in the Bitcoin price is coming. Here’s why.
Bitcoin Needs to Hold $7,400?
Nunya Bizniz, a popular cryptocurrency trader, recently noted that the 100-period simple moving average for Bitcoin has been a level of utmost importance over the past few months. He wrote that “For the past handful of months, a close above or below the 100ma has been indicative of continuation.”
Indeed, as Bizniz illustrated in the chart above, a price cross below the level always preceded massive price drops of anywhere from 10% to 20%, save for one occasion where only a 3% drop ensued.
Right now, BTC looks poised to break below that moving average, with bulls failing to keep up with bears. Should historical price action be of any current relevance, a close under $7,400 in around 30 minutes’ time (from the time of this article’s publishing) will show that the leading cryptocurrency could plunge by 10%, or maybe even more.
$7,400 is also important because it was the place where Bitcoin bottomed late in October, prior to the 40% jump to $10,500. As the below analyst pointed out in the tweet seen below, his bullish bias will break if BTC manages to close under $7,400.
While the short-term outlook for Bitcoin may be about to flip bearish again, some say that the medium to long-term directionality for the cryptocurrency remains in bullish territory.
Adaptive Capital partner Willy Woo recently noted that on-chain momentum, which the popular analyst has long claimed is correlated with Bitcoin’s macro price trends, is “crossing into bullish” territory after a multi-month downturn.
With this in mind, he asserted that the “bottom is most likely in,” meaning that any move lower than the $6,500 plunge “will be just a wick in the macro view.” He added that the unnamed indicator also implies that cryptocurrency investors will start to front-run the impending “halving,” the block reward reduction that will be taking place in May 2020.
Bitcoin Price At $100,000 By December 2021: Anthony Pompliano
- Pompliano, the co-founder of Morgan Creek Capital, spoke about Bitcoin prices, the upcoming halving, volatility and so on.
- He believes that Bitcoin prices will witness a lot of volatility in the next two years.
Anthony “Pomp” Pompliano, co-founder and managing partner at the venture capital fund Morgan Creek Capital, spoke to CryptoPotato on cryptocurrencies. The crypto community has been arguing about the “blockchain, not Bitcoin” narrative for a while now. This can particularly be noticed in China, where the government supports the development of blockchain-based technologies but outlaws the usage, storage, or trade of cryptocurrencies.
Pompliano said that the game-changer here is time. He added:
I think that everyone comes into the industry and they usually do it through Bitcoin. They hear about it, start looking at it, and then there’s the evolution.They go and check enterprise blockchain, check out tokenized securities, DeFi, but pretty much everyone comes back to Bitcoin. Now, that journey may take six months, 12 months, or 18 months, but I think the best thing for Bitcoin is time.
It takes time for people to get familiar with it, to start using it, to understand why it’s crucial. I think that’s going to happen at the government level, the private level, and the institutional level. So it’s just the time needed for people to get more familiar with it.
Notably, many financial and governmental institutions are welcoming blockchain-based technologies. Recently, Agustin Carstens, the General Manager of the Bank of International Settlements (BIS), suggested central banks embrace digital money.
A great use case for blockchain is triple-entry accounting. Single-entry accounting was replaced by double-entry accounting. It’s pretty much true of all transactions and accounting for the last hundreds if not thousands of years.
In that sense, I think the invention of triple-entry accounting is going to be huge for human development, and blockchain is a great way to do that in an automated fashion. We just announced that we led a series C funding for a company called Figure Technologies.
In that system, basically, what happens is, they created a digital mortgage, and the way that they transact with other people on Wall Street is through a decentralized settlement system. It’s triple-entry accounting that’s presiding over those transactions, so you don’t have a centralized party to do transactions.
Bitcoin halving is one of the most anticipated events in 2020. This is the event that will slash by half the miner’s rewards for adding blocks to the network. Several crypto enthusiasts expect the halving to have a significant impact on Bitcoin’s price since the supply of newly minted BTC will reduce. According to basic economic principles, when the supply of an asset is reduced while the demand remains the same or increases, its prices will surge.
Pompliano believes the same and he added:
The halving will be a big moment for Bitcoin. I don’t think that the price will shoot up the day after it, but I do think that from the day we are right now, we will see Bitcoin’s price at $100,000 by December 2021.
With respect to the current price action, Pompliano anticipates a lot of volatility:
I think that we are now in a bull market that will extend to around two years. In that period, I think Bitcoin’s price will see a lot of volatility with days spiking up 10-12% as well as 30% crashes. Generally, though, it will continue to trend upwards.
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