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Bitcoin (BTC) Price Prediction — Is $5,500 the Bottom?

Price Predictions
Thu, 03/12/2020 - 13:05
Denys Serhiichuk
Can Bitcoin (BTC) stay above $6,000 or should we expect another dump to $5,500?
Cover image via www.tradingview.com

The cryptocurrency market has not been this volatile in months. All of the top 10 coins have lost more than 20% in the past day. The biggest loser was Bitcoin SV (BSV), with its rate plummeting by 35% in the past day.

Top 10 coins by Coinstats

Meanwhile, the total market capitalization index has dropped by almost $50 Bln over the past 24 hours.

Market capitalization index

The relevant data for Bitcoin is below.

  • Name: Bitcoin

  • Ticker: BTC

  • Market Cap: $109 936 319 021

  • Price: $6,018.38

  • Volume (24h): $45 439 944 227

  • Change (24h): -21.74%

The data is relevant at press time.

BTC/USD: Has it finally reached the bottom?

The Bitcoin (BTC) rate has suffered the biggest recent price dump. On some exchanges, the rate has reached $8,500. The decline has amounted to more than 20% in the past day.

BTC/USD chart by TradingView

On the hourly chart, the dump was sharp and Bitcoin (BTC) lost $2,000 in just over a few hours. The coin is oversold on both small and big time frames. However, based on trading volume, there is not enough power from buyers.

Bitcoin Price Falling to $6,400 as $21.7 Mln in BTC Moved by Top Exchange

As a result, the more likely scenario is a sideways trend in the $6,000-$6,200 range.

BTC/USD chart by TradingView

On the bigger time frame, Bitcoin (BTC) has retested the levels it reached in May 2019. Currently, sellers lack the liquidity to push the price deeper. Moreover, because the decrease was very sharp, the current decline is not the start of a correction. From a technical perspective, if the main crypto can stay above $6,000, buyers have all of the opportunities they need to get the price to $7,000 by the end of the month.

Bitcoin is trading at $6,104 at press time.

About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and make predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others.

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