If you’re a cryptocurrency enthusiast or just following the Bitcoin market from a neutral point of view, it’s fair to say that the main cryptocurrency isn’t doing well this year. After a mid-year surge that put it over $10K against the American dollar, Bitcoin has dipped all the way down to $8K and even lower in recent weeks.
It’s a bearish market out there with bulls nowhere to be found for the time being. Our last week analysis identified the Bakkt as the culprit for Bitcoin’s ongoing slide. Experts believe that it may not have been just the bakkt. The Chinese Golden Week contributed to Bitcoin’s last week crash for the reduced trade volume.
With the Chinese already behind their desks, things still aren’t looking good for Bitcoin. On the other hand, altcoins are doing nicely. According to some experts, altcoin season is heating up. Although Bitcoin’s continued decline is a concern for many, some believe that it is likely to bounce back with a bang.
Bitcoin Price Analysis
At the moment, Bitcoin is trading in the $8.1K area, with the possibility of falling to the $8,000 support level. The biggest cryptocurrency is corrected lower against the US dollar, forming a triangle of resistance near the $8,160 area. In the near term, we believe that it will stay over the $8K trading mark and possibly shoot up to $8.2K.
The price is likely to bounce back by the end of the year according to many experts and crypto enthusiasts. This is just what crypto owners have been hoping to hear this week, but it’s not all good news.
The continued price decline has resulted in a neutral MACD. A short bullish reversal was on the cards, yet it didn’t materialize. The MACD is worth keeping an eye on – as soon as Bitcoin moves in the blue zone, it will be a positive signal. Still, that has yet to happen and bears are still in control of the market.
Another Week with Eccentric Claims
With the price sliding every day, not a week goes by without a bizarre claim of a legendary Bitcoin bounce back. This week it was reported that German bank BayernLB believes in a massive Bitcoin leap in May 2020 which will see the cryptocurrency’s price jump up to $90,000.
The state-owned bank recently released a report on Bitcoin vs. gold and reminded everyone that the Bitcoin halving effect is yet to be factored into the current price. Experts from BayernLB believe that the stock-to-flow ration will rapidly increase come May 2020 which will see Bitcoin shoot up to unprecedented highs.
Of course, not everyone will agree with this claim. Many see the bank’s report as an outlandish claim that will never materialize and believe that Bitcoin may be sliding down to oblivion. Altcoin enthusiasts think that the time of altcoins has finally come. The opinions on Bitcoin’s continued slide are divided and everyone is taking a side. If you ask us, we’d give it a bit of time and see what happens.