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Bitcoin Price Crashes Below $5,000: Is $1,500 Next?

November 19, 2018 at 19:07 by Arathur Stephen

Analysts at Bloomberg Intelligence predict that whilst the cryptocurrency markets have tanked over the past few days, the flagship cryptocurrency, Bitcoin (BTC) could further fall to $1,500, which is another drop of more than 70 percent from existing levels.

Bloomberg’s analysts, Vildana Hajric and Olga Kharif shared their outlook on the crypto market and declared that`“Bitcoin (is) no longer boring.” A careful look at the present state of crypto prices shows that this is the case.

The Ripple-Effect of Bitcoin Cash

While commenting on the unfortunate Bitcoin price crash last Thursday, Travis Kling, the founder of the recently-launched crypto-centric hedge fund Ikigai, told Bloomberg:

I didn’t sleep well last night… There’s a small chance that, it’s difficult to estimate, that something really bad could happen related to Bitcoin Cash that could then impact the entire crypto market.

Mike McGlone, Bloomberg Intelligence’s analyst, further argued that the recent Bitcoin crash “was sparked by the pump for the Bitcoin Cash hard fork.” He further explained that the “pump that began a few weeks ago, got the market a bit too offsides with speculative longs playing for the good old days. But this is an enduring bear market.”

In a related news, Rob Sluymer, an analyst at Fundstrat Global Advisors shared his prediction with their clients, that it will take “weeks, if not months” for the price of Bitcoin to rebound from the “technical damage” caused by the recent price decline.

Meanwhile, Fundstrat co-founder and Head of Research, Tom Lee told clients in a separate note last week, that he has lowered his previous prediction of an end-year target for the price of BTC from $25,000 to $15,000.

Blood in the Crypto Street

Bitcoin has dropped drastically by 10.84 percent and the total market capitalization of the crypto sphere has dipped below $170 billion, as altcoins continue to plummet further. At the moment, the market is in a precarious condition as 2018 proves to be a rough year for the global crypto market.

At times like these, when the bears are in control, fundamentals usually take a back seat and the markets are only driven by sentiment. However, these periods provide an opportunity to load up for the long term, as it is better to exercise patience for the decline to end before buying as prices can go abysmally low during panic selling.

Lets now find out what lower levels can attract buyers.

BTCUSD Technical Analysis

Last week, BTCUSD was in a bearish trend after the critical support level was broken. The price broke the 12-day EMA, 26-day Exponential Moving Averages (EMA) and also the support level of $6,000.  However, after a three-day break, the bears are back wreaking havoc. Bitcoin has now easily declined below the support of $5,450. The bulls failure to pullback to the $5,900 level indicates selling pressure on every small rise.

At the moment, the 20-day EMA and the 50-day Simple Moving Averages (SMA) have turned down and the Relative Strenght Index (RSI) is deep in the oversold territory. This indicates that the sellers continue to hit the BTCUSD pair without even waiting for a pullback.

If the bulls, however, fail to provide support at the important psychological level of $5000, the decline can extend to $4700 and even drop below to $4100. Nevertheless, the reading of about 15 on the RSI indicates that the selling has been overdone thus suggesting that the bulls can take control of the market anytime. The strength of the pullback will provide a clue on whether the decline has ended or continue.

Moreover, it is difficult to predict where it will stop when the price is correcting. Hence, we shall closely watch each support level. Until then, it is best to remain on the sidelines and avoid catching a falling knife.

In conclusion, while the bear market is expected to spill even more blood as experts and technical indicators call for more losses, Changpeng Zhao, the CEO of Binance, has shared the following encouraging Tweet:

If you have any questions and comments on Bitcoin today, use the form below to reply.

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