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#Bitcoin Price Analysis

Cryptocurrency Market Facing huge losses. Is it the right time to invest?

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It is always observed that, after a downfall, the cryptocurrency market mostly experiences a correction and regains stability.

Understanding the reasons for the Bitcoin downfall and deciphering the suitability of the investment.

Introduction

Investing in the cryptocurrency market is not any less than, gambling on a higher scale, just that the process is completely online and real-time in nature. It never closes as the cryptocurrency market runs 24/7 throughout the year which makes it highly suitable for the day traders to analyze the investors to track the cryptocurrencies in order to make some profits from them. Trading with cryptocurrencies is an art which can be mastered with consistent practice. It is observed that many of them become millionaires by investing in the cryptocurrencies while on the other hand it is also observed that many enthusiasts have lost their previous savings by investing in the crypto. Therefore it is highly speculative and the newcomers are advised to make an extensive research about the cryptocurrency they are opting to invest in it.

 

The Loop

Is observed carefully the cryptocurrencies undergo a constant cycle. It is observed that initially, Bitcoin leads the bullish market which is followed by the top altcoins which are in turn followed by the other lesser prominent Altcoins. Then huge corrections begin and a new floor price is set for Bitcoin and all the other altcoins as well, then there is no activity in the Crypto space for months together, until and unless another new big cryptocurrency hike is observed. Then the whole process repeats itself.

 

How are stock markets better than cryptocurrencies?

It is estimated that investing in the cryptocurrencies during the market fall, is the best time, as the currencies would regain the Bullish Trend. But there is a lot of difference in investing in a stock market and cryptocurrency because in stock markets the prices not only depend on the market forces of demand and supply but also the successful adoption of their product or service but in case of crypto market solely depend on the demand and supply. As the cryptocurrencies are not backed by any financial asset it is recommended on generalized terms to stay away from it.  

 

The actual reason for the market downfall

On 8th August, the prices steeply fell and the precise reason is pointed towards the decision taken by SEC to postpone the decision regarding implementation of the Bitcoin ETF. The prices experienced almost a 6% fall within a span of 24 hours itself to attend $6300. The proposal to the SEC was the third one put forth by the investment firm, VanEck where they had rejects it’s proposals twice, before. This time they willing to consider the issue and hence probably are taking some time to decide on the matter. In simpler words, they are making sure that this would have any adverse side effects on this highly volatile crypto market.  

Price specifications

The Bitcoin prices have fallen from an intraday of  $7600 to almost $6700 approximately. However, this 6% downfall is nothing when compared to a 30 % downfall which the cryptocurrency market had experienced in April 2017, when Cameron and Tyler Winklevoss had proposed for the Bitcoin ETFs and it was rejected by the SEC. In a nutshell, this decision has even worsened the market conditions.

 

Is a good time to invest?

It is always observed that, after a downfall, the cryptocurrency market mostly experiences a correction and regains stability. The trend can also be applied here and hence this can be a great opportunity for the public as well as institutional investors to invest in Bitcoin and other Altcoins, as they are expected to experience a recovery and increase its value. It is not very unnatural in nature that something takes a few steps back in order to experience a giant leap and thus even holds good for the cryptocurrency space.

 

Disclaimer

Although it is a great opportunity to invest in cryptocurrencies, the fact that constantly needs to be reminded of is that the cryptocurrency market is highly volatile and subject to the market conditions. An investor compulsorily needs to do an extensive background check on the project prior to investing in it. Otherwise, hasty decisions would lead to tons of losses, which is absolutely not viable in this generation which moves on the competitive edge of the technology. An investor should be able to stake the amount which he or she is OK to lose, otherwise, cryptocurrencies is not a suitable place for them.

#Bitcoin Price Analysis

Bitcoin drops to $3200. $2500 next for BTC?

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Today, bitcoin experienced a massive selling volume which let to the price of bitcoin falling down to $3200 which is a yearly low for BTC.

With the price of bitcoin falling, other major altcoins such as ETH and BCH also fell sharply against USD and other fiat currencies.

The price of BCH has been falling massively over the past few days with more than 25% loss in just a week of time. BCH was trading around $115 last week and fell up to $87 today.

 

Crypto Winters

Major cryptocurrency market analysts are predicting that the current crypto winters may last for months and bitcoin may experience a significant price drop in the coming days. Bitcoin price can fall up to $1500 as being predicted. Trading right now is quite risky as the market is quite volatile at the moment. Bitcoin was trying to recover back above $3400 from the past few days and even experienced a bullish run on 9th of December. But the bulls could not face the robust bears for long and the price started a downfall thereafter. The major price downfall happened today when the price crashed down from over $3450 to $3200 in just a few hours.

 

Technical indicators:

Support level: $3200

Resistance Level:$3300

BTCUSD 5 day chart

BTCUSD 5 day chart

Bitcoin is currently trying to recover from today’s massive selling and may settle somewhere around $3300 before crashing again. The major resistance level is now set around $3300 and the support level is around $3200. Once the current support is broken, bitcoin may fall down to the next support around $3000 before falling beneath that. However, the next long-term major support low lies at around $2500 and bitcoin may crash down to this level if the $3000 support is broken.

Bitcoin may not be able to move above $4000 at least for a month or so. Bitcoin is currently settled between $3000 and $4000 range from the past few weeks. Large venture capital firms that were planning to come into the cryptocurrency market have now started to back out looking at the market situation.

 

The following article is not a financial advice. Readers are advised to do their own research and analysis before making any investments in any digital asset such as bitcoin.

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#Bitcoin

When will Bitcoin return to overcome 2017 highs? Bitcoin miners going bankrupt

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Around 1 year back, Bitcoin hit its all-time high of $19665.39 on December 16, 2017. It has lost 82% of its value resulting in a $700 million fall in 1 year

Around 1 year back, Bitcoin hit its all-time high of $19665.39 on December 16, 2017. It has lost 82.74% of its value since then, as reported by CoinGecko.

 

This accounts for a loss of around $700 billion in a year.

Many experts believe that one of the consequences of this downfall is the fall of Bitcoin mining industry. More than 100,000 individual miners have shut down their operations and have been closed, and around 1.5 million servers have been shut down since September 2018.

According to analysts, a majority of the miners can profit only if BTC trades above $4500 level. As of today, only very few miners can afford to stay in the game, specifically those who have access to very low-cost electricity.

This leads to a problem.

As lesser and lesser companies will control the Bitcoin mining, there is a greater chance of them joining hands and executing the 51% attack.

Ryan Selkis says:

In such a maneuver the miners can reverse transactions and stop new ones, which can potentially make them flee with the money of thousands of people.

 

The hash wars between the 2 groups of Bitcoin cash has already triggered fears in the mind of investors. The truth is that in the short-term and in the mid-term (1-3 years from now), there seems to be no catalyst that will drive the bitcoin price back up (or to the moon). the sentiment is negative and most investors do not want to enter in the midst of a clear bear run.

What are your views on the current market conditions? Let us know in the comments section below.

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#Bitcoin Price Analysis

Bitcoin Price Analysis: Will BTC fall below $3000?

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Bitcoin price is still in a bear zone trading below $3400. The sellers are pushing the price downwards and the price may fall up to $3000.

Short Term Support Level: $3250
Long Term Support Level: $3000
Resistance Level: $3400

Key Points

  • Bitcoin price is still facing bearish pressure with the major resistance close to $3400.
  • On the hourly chart, the bitcoin price is facing major selling pressure above $3400.
  • If bitcoin price fails to break the resistance around $3400, the price will likely experience a downfall.

Bitcoin price is still in a bear zone trading below $3400. The sellers are pushing the price downwards and losses may extend with the price falling up to $3000 in short term.

 

Bitcoin Price Analysis

Bitcoin price is currently experiencing bearish momentum below $3400. The price fell up to $3340 earlier today but recovered back up to $3431. Bitcoin is currently trading at $3399 according to CoinGecko and there are chances of further losses.


 

The major resistance around $3400 is pushing the price downwards and forming a bearish trend line close to the resistance. Bitcoin price needs to break above the resistance between $3400 and $3500 in order to move upside but the selling pressure remains at high which is pulling back the price and the price may fall down to test the little support around $3250. The major long support right now lies at $3000 (200 weekly MA) which if broken could turn up bitcoin to crash down to $2500 or even below.

BTCUSD 24 hour chart

BTCUSD 24 hour chart

Looking at the 24-hour chart, bitcoin price is extending losses and bitcoin price will likely fall below to test the major support at $3000.

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