Bitcoin Drops Below $20k, Sets Sight On $16k Support

Bitcoin

The coin market continued to bleed on Sunday, August 28 as the premier cryptocurrency lost less than 0.5%, giving a cumulative loss of 5.5% in 48 hours. At the time of filing, BTC was exchanging hands at $19,975 and some market analysts are of the opinion that the digital currency would continue its downward trend despite a recent surge to $23k in the past few days.

Following the trend, ether dropped by 9.06% on Saturday. By Sunday, the digital currency had lost 0.009% bringing its 7 days losses to 8.31%, at a time when BTC lost +6%. With its losses in the past 24 hours, ETH is currently trading at $1,482.

To $18k Or Higher?

Some analysts are of the opinion the BTC would drop to $18k before seeing more losses in the coming weeks. One of such analysts is il Capo of Crypto who is predicting that Bitcoin would see more losses from the $18k range. He said that this is despite the fact that the price of the asset could rise to $23k before the next big crash.

Rocky Colapietro @RockwellCola has a different opinion. According to him, BTC has zero chance of making the $23k mark before the next big dumping. His reason is that Mt Gox, the Bitcoin exchange that was hacked in 2014, would be paying back investors in the coming days.

May Not Make The $23k Mark

He maintained that most of these investors would dump the coins, pushing the price of BTC even lower. @Targets1crypto agrees, saying that the market price of BTC will not rise to $23k in the near-term.

“We not gonna see 23k for a while now,maybe a few months”

Another user, Crypto­_Head said that;

“23k is difficult this week. You are completely discounting the sell off in the stock market that might happen in the upcoming week.”

Another analyst, Artur Weber said that we are in the first short squeeze that would lead to a mega dump that brings the price of BTC to $10k-$12k range.

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Higher Values for Monday

BTC Chart

At its current value, Bitcoin is trading at a value it last traded on July 12. On the 4H chart, the RSI value of the BTC/USD chart has a value of 29, indicating that it is oversold. The implication is that we would see higher values from Monday. What is not certain is how sustainable that would be in the near term.

 

Author: Jinka Kamma

Jinka Kamma is passionate about the prospects of blockchain and the freedom cryptocurrencies afford people across borders. He holds small amounts of bitcoin and tether.

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