Uh-oh. Is bitcoin suddenly beginning to lose its momentum?
Could Bitcoin Be Heading for Oblivion?
The world’s number one cryptocurrency by market cap has started the day off at just over $9,900. This means that the currency has dropped by more than $400 over the past 24 hours. It’s got a lot of people worried considering just how well bitcoin has been doing for the past week.
Not long ago, BTC jumped beyond the $10,000 mark. Many believed that this was a sign of great things to come – that perhaps the currency was on its way to reaching its all-time high again. Maybe, just maybe it was ready to extend beyond the $20,000 limit and go even higher.
However, as it stands, the currency could be on its way to a dip of some kind. Many analysts are pointing to what they call an “extremely accurate indicator” which suggests bitcoin could potentially fall back into the $8,000 range.
It’s the TD Sequential Indicator, and it was founded by Tom Demark who built DeMark Analytics. Demark says that what’s known as the “13” candle formed on bitcoin’s technical charts in 2017, which ultimately saw the currency enter the following year under very bearish control. As we all remember, the currency dropped from nearly $20,000 in December of 2017 to about $9,000 two months later.
It eventually fell all the way down to the $6,000 range in the summer months of 2018 and hit an all-time low of roughly $3,500 by the time Thanksgiving rolled around. That means that in approximately 11 months, the currency that everyone thought was the mark of the future had lost more than 70 percent of its overall value.
This “13” candle also showed up on technical charts during the summer of last year. At that time, the currency was trading for well over $13,000 per unit, but ultimately ended 2019 at approximately half that value. Demark now says that the candle is showing up again, and he’s confident it won’t be long before bitcoin begins to descend.
In a tweet, Thomas Thornton of hedge fund Telemetry writes:
#BITCOIN Demark Sequential Countdown 13 today. We recommend selling the long last week with 50 percent gains from December buy signals.
Some Say a Major Drop Is Coming Soon
He’s not the only one offering up a case of the old gloom and doom. Josh Olszewicz of Brave New Coin explained recently that he believes the currency could fall to as low as $8,500 in the coming weeks, while another analyst – who remains anonymous at press time – has suggested that bitcoin could fall all the way back down to $7,700, which is only slightly higher than where it was trading last Christmas.
Despite it’s recent drop, bitcoin has still managed to tack approximately $3,000 onto its price since the beginning of the year.