In the past 3 months, the Bitcoin price has been relatively stable, performing strongly against the U.S. dollar with solid volume across major markets in the likes of the U.S. and Japan.
Since December 16, within a 3-month span, the Bitcoin price has increased from its yearly low at $3,122 to $3,943, testing the $4,000 resistance level.
However, speaking to CCN in an interview, a cryptocurrency technical analyst known as “Bleeding Crypto” said that a drop to $1,850 still remains a strong possibility for the dominant cryptocurrency.
WHY $1,850 FOR BITCOIN?
Earlier this month, after Bitcoin cleanly broke out of $4,000 but failed to break out of the crucial $4,200 resistance level, the technical analyst said that a drop to $2,400 to $3,100 is likely to be the next near-term move for BTC.
According to the analyst, in mid-2018, Bitcoin remained in the $2,400 region for several months before dipping to $1,850 and establishing a bottom following the Bitcoin Cash hard fork, which led to a bearish trend in the market.
The technical analyst told CCN:
I believe so because if you look at the chart on May of 2017 we maintained support at $2,450 region for months before we dipped to $1,850 and that marked the end of the BCH fork bearish trend. We shot up from there and we never came back and really re-tested that area $2,450.
So I believe like with most significant area of support, a test back is probably as price action tends to repeat itself. So a test back of $2,450 does not seem irrational.
“Bitcoin is also at one of those funny areas where it can pump with the rest of the market. Or, it can ruin every decent looking altcoin set up and retest ATH salt levels around CT,” a trader said, noting that the upside movements of tokens can be overturned in a short time frame by the price movement of BTC.
On the fundamentals side, the adoption of cryptocurrencies by major financial institutions, technology conglomerates, and services firms such as Samsung Electronics, Julius Baer, and Fidelity has noticeably improved.
UNPREDICTABLE FOR NOW
While technical indicators remain weak for most crypto assets, the development, adoption, and institutionalization side of the industry have seen significant progress since early 2019.
With that momentum, the valuation of the crypto market has increased by nearly 30 percent since late December and in the upcoming months, at least throughout the second quarter of 2019, analysts say that momentum is key for Bitcoin.
Author Joseph Young
Source Link www.ccn.com/bitcoin
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