- After the Bitcoin price also broke through the important 7,000 USD mark, a new bearish trend seems to be finally confirmed.
- Many analysts see an important support level for BTC in the range of 6,200 to 6,400 USD.
After Bitcoin and the whole cryptocurrency market recorded bigger losses on the last “Black Friday”, the trend continues. In the past hours the Bitcoin price has now also broken through the 7,000 USD mark. At the time of writing, BTC was trading at 6,713 USD, recording a further drop of 7.2 percent over the last 24 hours.
Just like in the past, the altcoins are following the price trend of BTC. Accordingly, Ethereum, Ripple and others are also recording larger setbacks. Ethereum fell to USD 135 (-10.5%), Ripple to USD 0.21 (-8.3%), Bitcoin Cash to USD 197 (-7.1%) and Litecoin to USD 43.48 (-8.8%).
For many investors in the cryptocurrency market, the question now is how things will continue. The market is notorious for its high volatility. Nevertheless, the renewed downtrend is likely to put many HODLers to the test and challenge the hearts of investors and entrepreneurs, especially after the Bitcoin price was still above USD 10,300 on October 26.
We have collected some expert opinions to reflect the current sentiment.
Not all bulls are driven out yet
Brian Kelly, founder and CEO of BKCM LLC, a cryptocurrency investment company, has taken a stand on the current situation of Bitcoin at CNBC Fast Money and showed himself to be bullish for Bitcoin. Kelly explained that the fundamentals are currently improving during the sell-off, which means that there is a good chance that Bitcoin will hit a low:
I think the good odds are that this week and this sell-off here was an important low. I think there’s a couple different things going on. China is cracking down. There was some speculation that China might unban some of the cryptocurrency trading.
But if you look at the fundamentals underlying Bitcoin at this point in time – I look a lot at addresses and address growth. What we’re seeing over the last 30 days is we’re seeing growth in addresses of about 5% but the market is pricing in a decline in addresses of -3%.
As CNF reported, Charles Hoskinson, founder of Cardano, was also very bullish about the current situation. He explained that the market is currently negatively influenced by a lot of FUD. But the current news, Hoskinson said, only cleans up the market and exits “weak hands”. In the long run, the Cardano founder expects BTC to reach USD 10,000 again and possibly even USD 100,000.
Technical analysts see important support at 6,300 USD
Several technical analysts on Twitter see an important support level at USD 6,300 and USD 6,400, respectively. At this level, Bitcoin has historically had a strong trading volume. As popular Twitter analyst Josh Rager recently explained, there is currently no reason to panic:
BTC weekly close. 18% drop this week and currently trying to hang out to the $6800s. Funding still positive, so not overly bearish at this point as $6300s would be an eventual target here, the only question is does it bounce back up to high $7ks before or after the next drop
Twitter analyst “The Crypto Dog”, who has identified USD 6,200 as an important support level, shares a similar opinion.
BTC sliced thru POC and dropped another 15%. I haven’t been trading much this past week while traveling but I think it’s time to start looking for longs again. Thick support down to $6200, I think we see a handsome squeeze shortly. Let’s see how BTC settles in mid/low $6000s. Long soon.
The “Wolf of All Streets” and “Byzantine General” have also discovered an interesting indicator. Both analysts said via Twitter that the Relative Strength Index (RSI), one of the most commonly used indicators in technical chart analysis, gives a clear buy signal. The RSI tracks whether an asset is oversold or overbought by taking into account the “magnitude of recent price changes”. On the one-day chart, Bitcoin has reached a level below 25, suggesting a slight “oversold”. “Byzantine General” said in this regard:
The daily RSI rarely ever drops below 30. It’s currently at 25. The few times it drops below 30 it usually goes to 20. The only exception ever was the December ’18 bottom when it hit 10.
An apt summary of the current situation in the Bitcoin market is provided by Willy Woo, who summarised the current market in a few words.
BTC market in a nutshell: Long term price is determined by investor activity and adoption curve. The domain of on-chain fundamentals. Short term price is determined by a random walk of pivots in the direction of liquidating the most traders on BitMEX.