The world’s most popular digital currency, Bitcoin, has been trading in the range of $7,000 to $9,500 for the past few weeks.
About a month ago, the currency was averaging $9,500 before starting to decline. It opened the week at $8,300 and reached $7,100 yesterday, which is the lowest in weeks.
What’s the Situation?
The coin hasn’t shown significant jumps in a long time as it appears stuck under $9,000. The currency tried to break the barrier last week, but it couldn’t go beyond $8,600. Experts believe that the currency will continue to struggle until it breaks the $8,800 barrier.
For the past 24 hours, Bitcoin has “chartered a relief rally”, but experts are saying that it needs to continue rising for more than $1,000 in order to break the bearish trends.
As per the latest reports, this bounce is encouraging, but expectations are for a bullish reversal on 2020:
“Bitcoin needs to close above $8,300 by the end of the month, or we’ll likely have a bearish December to test new lows.”
This comes as a surprise to some since some other, less-known currencies such as Komodo and Maker are showing great numbers. The latter jumped 15 percent last week, and the former has gained about 10 percent last week. On the other hand, Bitcoin only gained 1.25 percent last week with a market capitalization of $80.3 billion.
Bad Week For Cryptos: Time to Sell Bitcoin?
If you go by Scalpex Market Flow Index, then it’s a ‘strong sell’. Analysts expect the coin to suffer more losses before it begins to gain again.
“Probability would suggest BTC/USD will need to spend a little more time testing below $7,000 before there is a significant bullish reversal,” said Filb Filb, a well-known analyst.
It is currently at a 50-day low, but experts predict it to go even lower – under $7,000 – as it finds support at $6,800. After this, the coin may begin to climb once again, but it may be challenging to hit the $9,000 mark since the overall feeling about the market is neutral.
Almost all the coins lost value last Friday as the entire market bled. Komodo and Maker were down as well, about 7 percent each.
Bitcoin needs to rally more than 15% and close above $8,300 by the end of the week, on Nov. 30. Otherwise, a “bearish engulfing candle” will be seen on the monthly price chart.
Why Is This Happening?
There are a number of reasons, but most important is a lack of trust in digital coins. The changing political scenario had a negative impact on the market. Plus, experts believe that Bitcoin bulls need to be purged on Twitter to let the market breathe.
“When no bulls can be found on Twitter, then we will have a great buy signal,” suggests Peter Brandt.