Okay. The bad news is that bitcoin is about to post its worst month this year. The good news is that the bearish behavior that’s been plaguing it as of late could finally be coming to an end.
Bitcoin: Will the Negativity Come to an End?
According to one source, all the technical signals suggest that the currency is about to turn itself around, and many enthusiasts say this news couldn’t have come soon enough. The month of November has been arguably the worst of 2019 for the world’s leading cryptocurrency. BTC – despite trading for well over $9,000 during the first half of the month – fell into the low $7,000 range less than a week ago.
The currency has been struggling to maintain its previously bullish momentum to the point that it’s trading for an even $7,000 at press time despite having risen $200 higher roughly 48 hours ago.
The bears began their initial takeover of bitcoin – and the crypto space in general – in late September. Things first went awry when Bakkt – the institutional crypto trading platform that’s owned and governed by the Intercontinental Exchange (ICE) – finally opened its doors for business after a year of hype, only to experience a rather lackluster debut. The platform failed to make any serious headway during its first weekend on the market, though things initially began to pick up later.
Sadly, that initial opening had a very serious effect on BTC’s price, knocking it down from $9,500 to about $8,100 over the course of just a few minutes, but things didn’t quite stop there. The anticipation surrounding Mark Zuckerberg’s Libra testimony – which was scheduled for late October – proved to be too much to handle for some crypto enthusiasts, and the currency fell another $800 into the mid-$7,000 range.
From there, however, bitcoin proved it had a few tricks up its sleeve, one of which came in the form of Chinese president Xi Jinping. China’s ruler had some very positive things to say about blockchain, claiming it could revitalize China’s economy and infrastructure. He also swore to push blockchain innovation within the country’s borders. This brought bitcoin back into the mid-$8,000 range, but Bakkt’s continued success eventually saw bitcoin trading past the $9,000 mark once again less than a week later.
So Many Gains Are Gone
Unfortunately, all those gains have since been erased. Jeff Dorman believes one of the culprits behind bitcoin’s loss is the fact that fewer investors are entering the space. He says:
The market is clearly in contraction, with no new money coming in to soak up the supply. The market has been remarkably weak.
Bitcoin is now slated to find support at the $6,500 level – as it did last May – which would ultimately bring it down to where it stood during the summer of 2018.