Newsflash: Bitcoin Price Hits a New 2018 Low at $5,170; is $4,000 Inevitable?

Within a period of 12 hours, the price of Bitcoin (BTC) has dropped from $5,560 to $5,170, to a new yearly low.

After dropping to $5,750 on June 11, BTC has defended the $6,000 support level relatively well with sufficient volume and trading activity in the exchange market. $6,000 has since become a major resistance level for the dominant cryptocurrencies.

Is Bitcoin Headed to $4,000?

Last week, Crypto Rand, a well-recognized cryptocurrency trader and analyst, stated that the next likely range for BTC is between $4,800 to $5,200, especially if BTC fails to recover swiftly from the low $5,000 region to the $6,000 resistance level.

“More Scenario still active. No bottom signals. Target on the $4,800-$5,000 range,” Rand reaffirmed his stance on the short-term trend of BTC, explaining that technical indicators of BTC are not demonstrating any sign of a bottom.

Based on the current conditions of the market, a further drop below the $5,000 mark is highly likely. When a sell-off at this magnitude occurs across every other major cryptocurrency, the volume of BTC tends to spike by 70 to 100 percent.

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On November 15, when the price of BTC dropped below the $6,000 for the first time since early August, the volume of BTC surged from $4 billion to $8 billion.

However, as of November 19, the volume of BTC remains at just above $4.8 billion, suggesting that sell-pressure on the asset is still relatively high and the resistance from bulls in the market remains low.

For a brief 48-hour period last week, major cryptocurrencies and small market cap tokens engaged in independent price movements, unaffected by the short-term trend of the dominant cryptocurrency.

As BTC continues to fall to the low region of $5,000 and becomes vulnerable towards an entrance into the high $4,000 region, other major cryptocurrencies and tokens are expected to fall by substantial margins.

Within a seven-day span, the price of BTC has dropped from around $6,400 to $5,170. Based on the intensity and the magnitude of the drop, a drop below the $5,000 mark is likely, especially considering that technical indicators are showing no signs of a bottom.

Extended Losses to Q2 of 2019

Willy Woo, a Bitcoin researcher and the founder of Woobull.com, said that fundamental indicators of the Bitcoin blockchain show a high probability of the negative sentiment around BTC and the rest of the crypto exchange market extending until the second quarter of 2019.

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“This last reading of our blockchain and macro market indicators is still in play. What has changed is that NVTS has now broken its support, typically a sell signal. All our blockchain indicators remain bearish. NVT, NVTS, MVRV, BNM, NVM. They are experimental but have served to make very correct calls to date, even when traditional on-exchange indicators were reading to the contrary.”

If BTC drops below $5,000, the probability of the negative sentiment around crypto extending until the first half of 2019 could become inevitable.

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