Following a week of inactivity crypto markets have started to move again today, but the direction is downwards. The Bitcoin bears have awoken and BTC started another plunge a few hours ago, the question now is how low will it go and where will 2019’s new low be.
Bitcoin Hits New 2019 Low
For the past seven days Bitcoin has been totally inert, bouncing off resistance at $3,600. A few hours ago this resistance turn support zone broke down and Bitcoin started another descent as Asian traders offloaded. Though not as sharp as previous plunges, BTC dropped over $150 or 3.5% in a couple of hours and is looking extremely bearish at the time of writing.
BTC is currently at its lowest level this year as it hit $3,470. The last time it dropped below $3,500 was in mid-December while recovering from a 2018 low of $3,200 on the 15th. Daily volume has increased to $5.7 billion but it is all going in the wrong direction as the Monday morning market dump accelerates.
BTC is likely to rally a little from $3,450 but further losses could be imminent and it could return to $3,200. Traders have taken to twitter urging BTC down in anticipation of loading up on it. Many expect a drop below $3,000 in the coming weeks and a number of observers and analysts have predicted prices as low as $2,000.
Prominent technical analyst Murad Mahmudov has predicted correctly on several previous occasions over the past year or so. His current prognosis for Bitcoin is not pretty with a final capitulation to $1,800 before any measurable recovery or trend reversal. The ride to the bottom may have just started as Bitcoin makes new lows for the year and heads towards $3,400.
Other analysts have called a $2,500 bottom by using fractals to measure repeating chart patterns. At the moment both scenarios look likely as the big red candles start appearing on the charts. The ever pessimistic JP Morgan recently released a report with the prediction that Bitcoin would dump to $1,250 if this bear market drags out any longer.
There is a common theme with all of these price predictions and that is more pain before any gain. The crypto winter is growing colder with a fresh spell of ice and snow this morning. Total market capitalization has dumped $7 billion in the past few hours as Bitcoin leads the downward charge.
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