Bitcoin, the leading crypto by market cap, has plunged over 80% from its record high meaning that there is not much possibility for further dive. It is very likely to find a low ranging between $2,000 to $3,000. Bitcoin is currently trading at $4,037, according to coinmarketcap data.
The ultimate occurrence gone down, the price was trading inside a downward triangle. This time around, the conditions are marginally different as the price is changing hands in an upside triangle. Several cryptoanalysts and investors regard it as an indication of a trend reversal that shows BTC/USD will return to its mean when it goes beyond this triangle and soars towards the earlier one.
The price is now changing hands above the 50-day moving average, nonetheless, there is still a problem somewhere. The uphill triangle observed on the day-to-day chart for bitcoin could more likely develop into a bear flag very soon in case it breaks marginally underneath it and then gets a big rejection.
Similarly, in October 2018, the rates broke above the downward triangle and went back inside it before reaching the daily close. That exact instance could occur this time but the price will have to make a long bundle to the downside. This simply implies that there is a robust likelihood of a flash crash to $3,000 before the big recovery.
This plunge towards $3,000 can’t be measured the bottom. A large percentage of the crypto community will regard this as the bottom and start purchasing which in turn will give the price the buoyant momentum it requires to rebound before the ultimate helpful wave to the downward.
Bitcoin is belated for one stout move to the positive trend which can complete the buoyant Gartley pattern clearly seen on the diurnal chart. This particular trend would also set BTC for a big plunge on the 7-day time frame and consequently set the ground for the ultimate curative wave to the downward tendency.
On the other hand, before all that occurs, a trend to the upside is compulsory. This move will happen perhaps at the end of the week due to the fact that BTC will have to complete the 7-day candle above $4,000 price level.
At press time, the rates hold resilient above the 21-day exponential moving average and it is very unlikely to slide underneath it before the upbeat Gartley comes to completion on this occasion.
Recently, we saw several cryptocurrencies such as Ethereum (ETH) outpace Bitcoin for the reason that the altcoin space received healthier news than BTC. Samsung’s blockchain and cryptocurrency wallet came out to support ETH and ERC20 but not BTC.
Correspondingly, several altcoins saw very positive developments, for instance, Stellar’s (XLM) official listing on Coinbase – a giant crypto exchange. The trading situations on the 7-day time frame strongly indicate that BTC has not been this massively purchased since the start of the correction. The total market cap now stands at $137.381 billion.
As Bitcoin’s volatility begins to plunge, the market will move up and down. This scenario already occurred back in October, when the index dropped considerably as the price waned. The same thing is anticipated to occur this time.