Will Bitcoin Fall Further?

It is crucial to keep an eye on how the price will behave over the next few days or weeks and, observe on which side of this triangle Bitcoin will break. This could be the major moment for the upcoming future.
Peter Bukov
Bitcoin 3

Everybody who has been following and trading Bitcoin recently, are likely to be disappointed. For eight months now, since February 2018, the price of Bitcoin hasn’t budged. The cryptocurrency’s last move in February saw it drop to a low point of 6,000 USD and, since then, there has been decreasing volatility and lower highs, while the lows remain at the same point. These factors are typical of a bearish trend. It is also interesting to add that the Bitcoin daily chart resembles a very big descending triangle pattern, which is a bearish formation.

Also, the king of cryptos has already lost around 70% of its value since its December peak, while other, smaller coins – known as Altcoins – have lost more than 70% of their value. Therefore, this huge decline is on a larger scale than what occurred in 2000, when the dotcom bubble burst.

Meanwhile, the market cap of Bitcoin has decreased from 330 billion USD to the current market cap of 115 billion USD, while the entire market capitalization of the crypto world, has dropped from 813 billion USD to around 225 billion USD recently. We may see a further drop.

The volatility of Bitcoin has been minimal over the past couple of days and weeks which suggests we may be in either an accumulation or distribution phase – which means a huge move might be around the corner.

Bitcoin Daily Chart

Should Bitcoin drop further below the support of 6,000 USD, a quick drop toward 5,000 USD, or even lower, could be in the cards. Another major support, where stronger bids could be located, is at 3,000 USD, which coincides with the triangle pattern potential.

However, if bulls manage to turn the triangle around, we could see a relief rally, targeting 7,400 USD and potentially 8,400 USD.

Therefore, it is crucial that we keep an eye on how the price will behave over the next few days or weeks and, observe on which side of this triangle Bitcoin will break. This could be the major moment for the upcoming future.

Analysis and opinions provided herein are intended solely for informational and educational purposes and don’t represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.

This article was written by Peter Bukov, one of TeleTrade’s leading analysts. 

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.