It seems like everyone is waiting to hear some positive news about the crypto market as a whole lately – and specifically news and theories about the downward trend of crypto (and when is it ever going to end).
After in-depth analysis, we have concluded that the $6,700 Bitcoin is down roughly 60% from its all-time high – but is still recovering slowly and might strike for another all-time high in 2018 soon.
If we look at the charts for historical patterns that mimic investor psychology, we can get some insights and clues about Bitcoin’s future performance. Obviously, these are not rules carved in stone – yet some predictions and theories that might happen.
Currently, there are three theories which align and predict a positive future for Bitcoin. They are as following.
1. We have already seen the worst scenario
From $20,000 to below $6,000. This is what the worst scenario for Bitcoin looks like. The gold prices increased and Bitcoin decreased, which is why a new bullish run might be the only solution to the sub-$10,000 priced Bitcoin.
The potential problem here is the fact that the market is bearish – and the only way it can move would come with the Bitcoin ETFs being officially accepted.
2. $3k To $5k Is Still ‘In Play’
Another possible scenario for Bitcoin and its future is the $3,000 to $5,000 price region – which could happen if the Bitcoin ETFs are rejected and there is no support for the largest cryptocurrencies. In a case like this, Bitcoin could drop – but only if the market volume is substantially lower than the one right now.
3. The $1k Bitcoin – A Real Doomsday
In the worst scenario, Bitcoin could drop to a price of $1,000 which is the most pessimistic observation here.
However, if the current ascending trend line breaks, the price may not find its true “bottom” until reaching the high of the prior “mega” bull run which in a case like this lies in the $1,200 area. If we see Bitcoin falling to this level, the largest cryptocurrency must find a new ascending support and hold on to it before a new “mega” bullish run.
Obviously, all of these theories are down from Bitcoin’s current path now – which is moving closer to the $7,000 region and reaching a 2-week high (which happened yesterday).
Bitcoin Plunges To A Yearly Low, Market Is ‘Prepared’ To Go Below $100 Billion
“As BTC is approaching the target of the 2014 fractal the targets of most people change from 3k to 1k and even lower. I still think $2,700 is an excellent place to buy if we should go there. ‘History doesn’t repeat itself but it often rhymes.’”Currently, there is a big risk in shorting and longing Bitcoin and other major cryptocurrencies in the market, which is why investors are observing the short-term trend of the crypto market by holding out on their trading activity.
Bitcoin Reaches A New Yearly Low At $3,200, Downward Trend Continues
“BTC lowest daily close year to date. Is there still a chance of recovery before more lows? Well, maybe. But I am not betting on it.”Another analyst named DonAlt echoed a similar sentiment and said that until the price of Bitcoin breaks out of the resistance levels at $3,600 and $3,800, drops like this will be expected. “Closed below the swing low – harsh rejection followed. There isn’t much support on the daily time frame still. So far prior support areas have flipped into resistance. Until that changes – stay away from longs,” he wrote. So far, Bitcoin has been able to maintain a range of $3,000 to $4,000 for over three weeks, from November 24th. Until the asset begins to demonstrate signs of a multi-month consolidation period and a high level of stability, any form of a gradual recovery is unlikely to happen. Bitcoin has recently consolidated from the yearly low of $3,200 and is now trading at $3,301.
Analysis: Interest In Crypto Rises With More Than 55 Million Users In 2018 Alone
“Combining public data and survey findings, we estimate that the total number of user accounts at service providers amounts to at least 139 million in late 2018.’’Active and verified users have increased seven times than two years ago. Last year the number of crypto users was 18 million, in 2016 there were only 5 million. The report notes:
“Using a combination of verified user data and the average share of ID-verified accounts described above, we also estimate there are currently at least 35 million ID-verified users globally.”There has also been an increase in the number of active users has also increased which in 2016 was about 35%, it rose to 36% and this year reached 38% active users. Despite the bear market, there is an even bigger increase in the number of crypto service providers that add support for multiple cryptocurrencies. Even cryptocurrency exchanges support multiple coins which make up to 89% of all the exchanges but also wallet providers decided to add multi-coin support up to 90%:
“Wallets with multi-coin support surged from 46% in 2017 to 90% in 2018, with 60% of wallets currently supporting more than 3 cryptoassets as opposed to only 10% in 2017.’’
Altcoins Consolidating Above The Yearly Lows, Bitcoin Follows The Recovery Path
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