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Will Bitcoin Hit Peak Exhaustion in 2019 End? What Indicators Show

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  • Joseph Young
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    Low prices could leave bitcoin and other cryptocurrencies vulnerable to declining sentiment in December.

Will Bitcoin Hit Peak Exhaustion in 2019 End? What Indicators Show
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Contents

Despite the strong recovery of bitcoin from its dip to $6,516 on November 25, low prices could leave the cryptocurrency market vulnerable to declining sentiment by the year’s end.

Unlike other markets, bitcoin’s trading activity does not significantly decline during holiday seasons, creating an environment for traders and investors that is different to existing markets.

Scenario for peak exhaustion for bitcoin in December 2019

As said by Arca chief investment officer Jeff Dorman, bitcoin and the cryptocurrency market, in general, tend to be swayed by sentiment and emotion more than traditional markets.

As such, when a rally begins, the price of bitcoin often increases by two to three-fold and when a correction occurs, bitcoin tends to contract by 50 to 80 percent.

Since achieving $10,600 on October 26, the bitcoin price has fallen to below $6,600, by almost 40 percent against the U.S. dollar.

For bitcoin’s short to medium term price trend, momentum is key. If the bitcoin price starts to show signs that it will end 2019 below important resistance levels, the sentiment is likely to carry over to December.

“Price and emotions tend to work together so when prices are at all-time highs, everyone is euphoric and probably way over their skis with regard to how fast this industry is going to grow. And when things are in contraction, prices are down, everyone is depressed and acting like the world is ending,” Dorman said.

A similar scenario played out in December 2018, when the bitcoin price crashed sub-$4,000 during a month that historically has seen large gains like in 2017.

In November, as the bitcoin price stabilized above $6,000, investors anticipated the price of bitcoin to begin recovering gradually, targeting its record high at $20,000 in 2019.

However, bitcoin crashed by 50 percent instead, and that sentiment was carried across 2019 and the first quarter of this year.

Hard to see a big move up before 2020

Although bitcoin has recovered from $6,600 with strength and is likely to see more upside movement in the short term due to oversold conditions shown by technical indicators, low volumes show that there may not be enough buying demand at the current price range.

Technical analysts have been targeting a rebound to the $8,000 region following the dip to $6,600 by the dominant cryptocurrency, but analysts remain cautious on whether the recovery can extend to the $9,000s and $10,000s.

“I'm always hesitant to predict prices in the short term [as opposed to the medium term] as I think the shorter the TM the more random/ less probable the prediction becomes. Nevertheless, wouldn't surprise me to see price move sideways and volatile in the short term,” a prominent trader known as Dave the Wave said.

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About the author

Joseph Young is an analyst based in South Korea that has been covering finance, fintech, and cryptocurrency since 2013. He has worked with various recognized publications in both the finance and cryptocurrency industries.

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Bitcoin Price Likely to Surge to $8,200 Before Surprising Bulls: Crypto Analyst

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  • Yuri Molchan
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    A crypto analyst says that Bitcoin follows ‘standard crypto games’ and expects BTC price to surge to $8,200 before making a market reverse

Bitcoin Price Likely to Surge to $8,200 Before Surprising Bulls: Crypto Analyst
Cover image via 123rf.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Contents

After Bitcoin bulls reclaimed the $7,400 level earlier, the flagship currency is holding in the $7,500 area. A crypto analyst says that these are ‘standard crypto games’ – Bitcoin is likely to surge into the $8,000 area before plunging again.

Bulls, get ready to rock - $8,200 on the horizon

At press-time, Bitcoin is swapping hands at $7,544. For a long while prior to that the price was trading flat in the $7,200-$7,300 area.

However, on Friday, the Bitcoin price managed to recover to the $7,500 level.

BTC price CMC
Image via CoinMarketCap

The analyst @CryptoMichNL reckons that Bitcoin is following a standard pattern of the volatile crypto market and is going to please the bulls before giving them a nasty surprise of a bearish reversal.

‘Bitcoin halving is the main catalyst’

The next Bitcoin halving programmed by Satoshi Nakamoto, the Great and Terrible, is to happen in May 2020. Many in the community believe it to accelerate the Bitcoin price surge since miners have not priced it in.

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Tim Draper Says His $250,000 Bitcoin Price Prediction Is Not Based on Halvening

Doubts about the BTC halving impact

However, a co-founder of the Morgan Creek Digital Jason Williams, the less Twitter-active than his colleague Anthony Pompliano, reckons that the Bitcoin price is likely to dip after the halving. The thing is that miners are going to get twice as fewer BTC for each new block than now and many of them are going to have to sell their BTC to pay the bills.

Besides, chances are high that small mining pools will quit since mining will stop giving them enough profit.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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