Bitcoin has been suffering greatly as of late, but is it possible for the father of crypto to sink even lower? According to some analysts, the answer is an unfortunate “yes.”
Where Are We At?
At press time, Bitcoin is trading for just over $4,400. This is a serious nosedive from last week’s not-so-prominent $6,300, but even that price is looking pretty good by comparison. In addition, Bitcoin is not showing any signs of momentum, nor does it appear poised for a strong recovery, and technical analysts believe the worst is yet to come.
According to Jon Pearlstone – publisher of the renowned cryptocurrency newsletter CryptoPatterns – large price slumps are generally followed by significant bounces. He claims:
Unless we see a strong move up quickly to retest the $6,000 breakdown level (2018 prior low), the volume on these drops makes a retest of the current lows likely. If the price drops below $4,000, the next and possibly ultimate target for Bitcoin will be $3,000, which is a full 100 percent retrace of the 2017 move that led to BTC reaching its all-time high near $20,000.
The Negativity Is Overwhelming
Mati Greenspan – a senior market analyst with the social trading platform eToro – commented that Bitcoin, during the early morning hours of Thursday, November 21, fell to approximately $4,200, but then rose quickly to $4,700 before settling at its current price. He believes this is both a strength and a weakness in that while Bitcoin could possibly move up, it’s failing to do so in a timely manner.
Today, we bounced off $4,250, which I thought was pretty refreshing. However, if we do go lower, the next area of support isn’t until $3,000 to $3,500.
Joshua Frank – co-founder of the cryptocurrency analytics platform TheTIE.io – states that negative sentiment first began creeping into the crypto arena on November 7. This was witnessed when Bitcoin fell from about $6,500 to $6,300. Things became even worse on November 14 when Bitcoin experienced its heaviest plunge and fell to the $5,000 range. He says that negative sentiment hasn’t let up since then.
Some Aren’t Giving Up
It’s hard to say where Bitcoin will go from here, as the cryptocurrency industry has shown us it is virtually capable of anything. However, some figures are refusing to let a few bearish conditions push them back, and believe Bitcoin still has a bright future ahead.
Adam Back, for example, is co-founder of the blockchain firm Blockstream. He’s confident that Bitcoin could likely hit a price anywhere between $250,000 and $500,000 within the next few years.
Are things destined to get worse for Bitcoin? Why or why not? Post your comments below.
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