With loss of $1000 in two weeks, there are indications that Bitcoin is officially in a bear market despite high expectations months ago that the market was primed for bullish trend by 2020. There have been several predictions that the coin market would experience another boom in a few months due to the reversal of last year’s down trend.
Bitcoin had traded as low as $3,262 last January after a massive correction having reached an all-time-high in December 2017. The cryptocurrency started making another remarkable gain in May and by mid July traded close to $13,000 leading to wild speculations that the coin would scale higher.
This had led to a tweet by Binance CEO, Changpeng Zhao who wrote that predicting price of Bitcoin is easy, but that what isn’t is getting the exact time of the price.
Presently, some analysts are saying that the spike experienced in the middle of the year was not organic. Daarul50, in a comment at BTT wrote:
“People need to understand that the latest spike from $7000 to $10000 was mostly is not organic move. What I mean is that was a temporary hype as a response on china move treating Bitcoin differently. Actually they mentioned it as a blockchain support in China… a moment manipulators -whales- took full advantage of (to manipulate) the market.”
$Btc— The Cryptomist (@TheCryptomist) November 19, 2019
Dont think it will be long until bulls in the short term take the wheel as RSI on various time frames look bottomed!
I do think this will be short term, before further descend towards a final touch of wedge support pic.twitter.com/yaDFvPs0Hc
They maintained that the evidence could be seen by the fact that Bitcoin is presently struggling to keep from breaking the $7000 support on Thursday, November 21, 2019. At the time of filing this report, the cryptocurrency was trading at slightly over $8000 with the bearish pressure poised to push the coin price lower.
Another analyst, Bossian had an even gloomier analysis, he maintained that the recent death cross is a pointer to the direction the market is headed. He stated that the support to watch out for at the moment is $6,400, a price that according to him would indicate that Bitcoin is poised for a real bounce by 2020.
Nevertheless, they are of the opinion that a break of the $6,400 support would indicate that Bitcoin price would drop all the way down below $3000 by 2020 through 2021.
Many of the most optimistic analysts are predicting a negative movement in the meantime even though technical fundamentals show that it could be a long way down. Some in this category base their predictions on Bitcoin price history.
These said that Bitcoin has history of taking the bears by surprise;
Another commenter, Barbara wrote:
$BTC – ever since the late October pump, Leveraged funding has been positive meaning there has been a premium cost to enter LONG positions even while #bitcoin continues to retrace, until this goes negative its still a better value to countertrade short, until proven otherwise 🤔 pic.twitter.com/VLL8P2ILcX— Big Chonis⚔️Chonis Trading 🚀 (@BigChonis) November 19, 2019
“When the value of bitcoin was around $7k and many people predicted that it could fall to $6k, we were just preparing for this when bitcoin suddenly made a very big surge for $9k + and I think that it is about repeating itself again as there has been too many FUD prediction for some day now that looks similar.”
What is obvious is the the high expectations of the bulls for 2019 has all but been dashed, debar a remarkable event that would reverse the trend. Not even a fake whale pump is sustainable as we have seen from recent events.