- Bitcoin could maintain its downward trend in the short term. A rebound, for now, seems unlikely.
- Halving divides the opinions of analysts. The price of Bitcoin could remain in a bearish market.
As CNF has been reporting, the price of Bitcoin continues its downward trend. Since it broke through $10,000 than a month ago, it has depreciated by about 15%. Analysts predict that the trend will continue for a while, what are the reasons?
Bitcoin price: bear market until 2020
The causes of the current market trend are diverse. Among the most commented are the recent news about the hardening of China’s regulatory policies towards cryptocurrencies. As we have reported, the Central Bank of China has decided to take a series of measures to keep crypto exchanges under closer scrutiny.
For this reason, the “Xi Pump” that drew attention in the crypto community, now, could be having the opposite effect. Although it is a speculation, a more open participation of China in the crypto market seemed a real possibility and a great potential for the ecosystem.
On the other hand, there has been speculation about the effect that the capitulation of small miners could have had on the price of Bitcoin. By emptying their mining wallets, they would be increasing Bitcoin’s supply volume in the market. This seems unlikely due to the small percentage these miners had in the market, but it could have contributed.
In any case, analysts seem to agree that the trend will continue for a while. At least for the rest of 2019 and a significant part of 2020. Peter Brandt has expressed at his Twitter account that the extension of the bear market “could be a surprise”. He even went so far as to say that the trend will only be reversed by mid-2020.
The Bitcoin price drop floor, according to analysts, fluctuates. Some place it at 6.000 USD, saying that this would be right time to start accumulating long positions, but others range from 1,000 to 4,000 USD. Peter Schiff is among the pessimists, but is also known to have a highly critical stance towards Bitcoin.
#Bitcoin is nearing the neckline of the head-and-shoulders top I pointed out before the Oct 25th 40% pump. The right shoulder is now shrugged and the neckline slanted and parallel to the shoulders. If it breaks the price objective for the dump is $1,000 to complete the pattern.
— Peter Schiff (@PeterSchiff) November 21, 2019
The market is expected to begin to recover after the Halving. At that point, the price could gain enough momentum to reverse the trend. But the implications of Halving continue to generate controversy in the crypto community.
When will the price of Bitcoin rise? Halving is the key
The Halving will take place next year. Historically, this event has meant a spike in the price of Bitcoin. At this moment, however, there seems to be no consensus among analysts. While some say Bitcoin is on its way to reversing its trend, others, like Alex Kruger, are less optimistic about its ability to change the trend.
– this is a bear market, price action says so
– price set a local bottom today
– $8000 will trade again soon => short above
– good spots for longs: $6400/$6000
– high odds halving won't be bullish
– many miners will capitulate if hash growth continues unabated
— Alex Krüger (@krugermacro) November 23, 2019
Analysts have been able to conclude that, in the face of next year’s Halving, it is necessary to be cautious. Managing expectations against a bear market that is likely to last for a long time.
The price of Bitcoin is currently at $7,174 and has had a slight gain of 1.17% in the last 24 hours. We will continue to monitor its development.