Bitcoin’s Price has been surprising traders and miners a lot this year. Unfortunately, these price changes, as a rule, were of a negative character. Bitcoin has been falling deeper and deeper since the beginning of 2018, with a few short-term bull-runs.
“We’re at a classic psychological stage where the market is reversing the 2017 frenzy. The hard fork was a key trigger that signalled the technology is way too nascent. You had these dicey characters threatening to destroy each other and institutions said ’It might be best if we stay away from this for a while,” Mike McGlone, a technical analyst told Bloomberg.
The value of Bitcoin has been bouncing up and down around $4,000 over the last couple of weeks. Yesterday, on December 6, we saw a major drop to $3,675, which is considered as the lowest price of this year. Generally, Bitcoin didn’t change its direction and continues moving with a short-term bearish trend.
As for the future, it seems that the virtual coin will hold its position and there are no bullish hints on the horizon. Directional Movement Index is currently showing us that the sell-off we observed at the moment is at the maximum level since the strong fall from $9,300 to $6,600 almost half a year ago.
Technical analyst Mike McGlone predicts that Bitcoin will have even more stress and fuss in the future. Per him, the largest crypto by market capitalization may lose 60% of its value and sink down to approximately $1,500. He explained that the current enormous sell-off was provoked by traders, who preferred to take no part in the hard fork of Bitcoin Cash. There is a high probability of the same outflow of crypto coins will be observed at the end of the year due to the tax-related issues.
“There’s little to prevent fading Bitcoin prices from reaching the continuous mean of $1,500,” Mr McGlone said.
What Does the Community Say?
“There are still no objective causes for the price drop. The price of Bitcoin and other cryptocurrencies depends, to large extent, on the players’ sentiment but not objective reasons. If we analyse the current situation, we can point out that investors are always on the lookout for a safe haven and reliable assets to invest in. The conventional markets are no less feverish, especially as a trade war is simmering between the USA and China.
We are witnessing the volatility of the equity or other traditional assets markets, and, given this, nothing special is happening with Bitcoin. Yes, it has dropped compared with the last year’s price but it has gone up substantially compared with December 2016. We have to understand that a significant part of crypto assets is consolidated in the hands of a few major players who often set the rate. And we cannot rule out that bearish operations are part of the strategy aimed to crowd out from the market small-sized players who entered it on hype. So far, sowing panic has been a success.
There is a dwindling number of those who believe in Bitcoin’s potential and shed coins hoping to lock in profits or losses. I am an optimist convinced that the price will grow and I believe in cryptocurrencies.
I would recommend those who share my views and want to make money, to look carefully at other coins that are grossly undervalued today. They are the ones that can replicate Bitcoin’s success in future.”
According to Alex Momot, founder & CEO of
REMME, a startup providing solutions for improving security in crypto space, “blockchain technology continues to prove its value, not only in transmitting billions of dollars, but for hosting dApps that enterprises can use to reap the advantages of distributed networks that have no central point of failure.”
He told Coinidol:
“If you look at the market data bitcoin has fallen by more than 70% four times, since it appeared on exchanges. This includes a 93% drawdown in 2011, an 85% drop in 2014 and an 82% drop this year so far. Historically, every time Bitcoin has fallen far, it’s bounced back with a vengeance, going on to record highs in each instance. Even if you only go back two years, bitcoin’s provided a return of 410%. It can both go down and break 3K point or start rise. The matter is that trying to determine a fair value for Bitcoin today is extremely difficult, as trading bots on exchanges and OTC deals add confusion, making it hard to accurately gauge volume.”