Analyst Predicts Bitcoin Price Drop to $2,800 This Year

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Bitcoin’s pending “death cross” has left investors worried and confused.

According to a graph posted by Bloomberg, the 50-day moving average is getting close to the 200-day moving average. If it touches the latter, or worse, goes below it, bitcoin will suffer a great loss.

Considering these trends and comparing these activities to BTC’s price in 2013, technical analyst Paul Day from Market Securities Dubai Ltd., has claimed that the value will eventually drop to $2,800. “There’s been a definitive shift over the past couple of months after the bubble activity at the end of 2017,” said Day.

2013 is often remembered as one of the worst crashes in BTC history. First, the price dropped from $233 to $67 in April, a 71% drop in 12 hours, then the price remained extremely volatile in the last two months. It broke records on Nov. 30, 2013 with a value of $1,126, but declined by 19% within 24 hours, only to recover on Dec. 5, 2013 to $1,155. The price kept decreasing by 41% and increasing by 47%, before dropping to a surprising value of $503 on Dec. 19, 2013. From an all time high of the first week of December, the price had declined by 56%. The price drop was such that it took bitcoin over three years to finally cross the $1,000 barrier again.

Day isn’t the only analyst predicting a low value for bitcoin in the future. Robert Sluymer, technical strategist at Fundstrat Global Advisors, wrote that “Bitcoin will begin to show evidence of bottoming short-term closer to $5,873.” Charlie Munger, Vice Chairman of Berkshire Hathaway Inc., has openly called bitcoin “a noxious poison”. Munger also called it disgusting and said that he hated it ever since it was created.

Meanwhile, bitcoin bull John Mcafee predicted that the price will reach $1 million by the year 2020. Even Jamie Dimon, JPMorgan Chase’s chairman and CEO, who previously called BTC a ‘bubble’ has amended his statements. “I regret making comments saying Bitcoin is a fraud. The blockchain is real. You can have crypto yen and dollars and stuff like that, ” said Dimon.

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BTC, ETH See Small Growth After Yesterday’s Fall To Monthly Lows

After a drop in the crypto markets yesterday that brought Bitcoin’s (BTC) price down below $8,000 for the first time in over a month, the two biggest coins listed on Coin360, BTC and Ethereum (ETH) have seen slight growth today, March 16.

Chart

BTC is currently trading around $8,504, up around 2.90 percent over a 24 hour period by press time. ETH is up around one percent by press time, trading for around $617.

Ripple (XRP), which is ranked third on CoinMarketCap, is up by the smallest amount of the top three strongest coins. XRP is trading now for around $0.69, up 0.42 percent over a 24 hour period to press time.

XRP

Of the top ten coins listed on CoinMarketCap, none are down more than 2 percent by press time. Altcoin Cardano is down the most for the second day in a row, a little more than 1.5 percent of a 24 hour period, trading around $0.18 by press time.

The crypto markets’ sinking prices since the new year have been attributed to a sell off of around $400 mln in BTC by a Mt. Gox trustee. The slight growth that the market is experiences today may be due to a settling down of the premature FUD caused by Google’s Financial Services Policy update on Wednesday, March 14, that crypto ads would be banned starting in June 2018.

Bitcoin Price Technical Analysis for 03/16/2018 – Support Break and Retest?

Bitcoin Price Key Highlights

  • Bitcoin has fallen through support at $8000 and could be due for more losses if this serves as resistance moving forward.
  • Applying the Fib retracement tool shows the nearby resistance levels that could keep gains in check.
  • Technical indicators are also reflecting increased bearish pressure.

Bitcoin price has fallen through the key $8000 level and is showing signs of a pullback to nearby correction levels.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. The gap is still pretty narrow so an upward crossover is still a possibility, although the 100 SMA is also near the 61.8% Fibonacci retracement level.

This could act to the area of interest’s strength as resistance, likely pushing bitcoin price to fall back to the swing low at $7682.4. Stochastic is crossing higher without reaching oversold conditions, which suggests that buyers are trying to hop in.

RSI is on the move up but appears to be changing its mind halfway through, so sellers could be putting up a fight. A break below the swing low could confirm that a longer-term selloff is underway.

Market Factors

It looks like the odds are stacking up against bitcoin price these days, as the looming G20 Summit is leading investors to worry that global leaders would take a hardline stance against cryptocurrencies.

So far, the headlines haven’t been so positive, as regulators are stepping up efforts to crackdown on potentially illegal activity while there have been reports of security glitches. IMF head Lagarde has called upon encryption experts to help catch criminal activity involving digital currencies as well.

And to top it all off, Google’s announcement on banning cryptocurrency ads by June also took a huge toll on bitcoin price this week. This followed a similar announcement by Facebook back in January, which drove prices around 12% lower then.

Dollar demand is also supported owing to expectations of a FOMC interest rate hike for next week as data has been mostly upbeat.

AltcoinToday.com

Source: Newsbtc

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