Bitcoin is continuing its price falls, and many analysts find themselves disagreeing over whether the currency will bottom out soon.
Bitcoin: When Will the Drops Cease?
Over the past two weeks, the world’s leading cryptocurrency has lost more than $2,000 in value. During the early portion of November, bitcoin was trading for well over $9,000 following positive blockchain comments from Chinese president Xi Jinping and Bakkt’s sudden surge in business.
However, from there, the currency has seemingly lost all its recent gains and has dropped to about $7,100 at press time. This marks a massive drop in a relatively short period, and many analysts are fighting back and forth regarding where the line will get drawn.
Tim Enneking – the managing director of Digital Capital Management – has commented:
We don’t see $6.5K as the bottom, although it’s the first strong candidate for that title.
He further explained that he predicts bitcoin will ultimately fall below $6,000, then spike back up towards $6.5K where it will hover for some time.
Marouane Garcon – a crypto analyst – also said that she expects things to get worse for bitcoin, stating that it was “overbought.” She said:
It’s nakedly obvious that we can’t agree on a true price and it’s still extremely volatile to current events and even fake news. I wouldn’t be surprised if the price continued to drop.
While most appear to agree that bitcoin is bound to sink further, others are sticking more positive waves into the mix. One such figure is Mati Greenspan, an analyst with the cryptocurrency exchange e-Toro. In a recent newsletter, he explains:
The retracement from the currency peak may soon be coming to an end… It’s now been exactly five months since bitcoin has topped out just below $14,000 per coin. Since then, volumes have steadily decreased despite the introduction of Bakkt future contracts and Fidelity Digital entering the space. Looking at bitcoin’s short history, we can see that the average drawdown is approximately 43 percent and tends to last 122 days. Of course, past performance is not an indication of future results but just by the data, it seems that the worst of this retracement might just be behind us.
Things Are Still Good… Technically
Interestingly, while bitcoin has seemingly chosen November to once again fall past immeasurable points (this is the same thing that occurred in 2018), the currency can still be technically labeled as bullish given that just seven months ago, the currency was trading in the $5,000 range. That means that despite the recent falls, BTC is still trading for $2,000 higher than where it stood during that time.
In addition, next May is the scheduled halving which will set BTC mining rewards at half of what they are now. This could potentially boost the currency’s price even further given that bitcoin will be “less common.”