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Bitcoin Regains Losses After Bouncing Hard Off $6,550 Resistance

December 18, 2019 at 21:34 by Matt Jackson

Having endured a poor couple of days, Bitcoin looked certain to be following a similar trajectory today, falling to $6,545 at lunchtime. However, no sooner did it fall this low, than Bitcoin prices started to recover. Within an hour it had recovered to $6,700 and passed $7,000 at 20:00 GMT. Bitcoin is now trading at $7,135 at 21:00 GMT. Other cryptocurrencies have followed the recovery. Ethereum, Ripple, and Bitcoin Cash have posted similar-sized gains, while EOS is the best performing of the major coins.

There had been plenty of negative sentiment around cryptocurrency in the past few days. Continued sumps had been blamed on low trading volume, while some pointed the finger of blame at a Ponzi scheme called PlusToken. The Chinese scheme offered investors the opportunity of 600% gains, and in true Ponzi scheme they offered further incentives for bringing new recruits on board. It is estimated that the founders of the scheme have cashed out $185 million of their ill-gotten Bitcoin, thus far. The selling of large volumes of illicitly obtained Bitcoin can force a negative move in prices.

Miners cashing out their Bitcoin is another possible reason being mooted for the decline. The continued decline in price will have led some to cash out, while many will be cashing out ready for the holidays. There is also the threat of the halvening next year, which means that payouts to miners will half. The halvening is expected in May 2020.

However, any gains could still prove short term. One Twitter trader has suggested that there will be no stopping of the price until it gets down to $5,500. Jacob Canfield said that the level would represent the 78.6% retracement level from swing low to swing high, and cautioned that there may be some ups and downs along the way, but that the price is likely to fall to $5,500, a level we haven’t seen since May this year.

However, there are also those that believe the move represents a trend reversal. The move saw increased volume, which has proven elusive in past months. There is a lot of resistance ahead of the world’s biggest cryptocurrency by market capitalization, but the same halving that caused miners to cash out their coins could also prove a catalyst that drives prices further upwards and towards all-time highs.

At 21:00 GMT, Bitcoin (BTC) prices are up 7.73% in the past 24 hours and the leading cryptocurrency is now trading at $7,135.92. Ethereum (ETH) is up 6.31% and changing hands at $130.47. Ripple (XRP) and Bitcoin Cash (BCH) have also posted gains, rising 7.15% and 6.18% and cost $0.196 and $187.54 respectively. Litecoin (LTC) is changing hands at $40.62, having increased by 8.67%.

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

2 Responses to “Bitcoin Regains Losses After Bouncing Hard Off $6,550 Resistance”

  1. zack king

    think BTC will go back up and then take a major dip, ready to rise above (in the new year) higher than it did this summer. hoping to see above 12.5k n 2020

    [Reply]

  2. Matt Jackson

    There’s a few people pointing to a dip down to $5.5k, or are you thinking more like the previous low of $3.5k?

    [Reply]

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