Bitcoin took a beating in the past week. It suffered losses and ended up below $3,500. It all started after the Bitcoin Cash hard fork. That’s when Bitcoin’s stability at $6,200 to $6,500 suddenly disappeared and dropped below $6,000. After which, it sunk below $3,500. But it isn’t just the Bitcoin Cash hard fork that caused turmoil in the crypto market.
Bottom is Yet to Come?
Few months ago, Mike Novogratz thought that Bitcoin has already bottomed at $6,200 to $6,500. However, we all know now that it hasn’t. Now, David Puell who is a Bitcoin and market analyst thnks that Bitcoin is about to hit bottom by December or by the time we reach first quarter of next year. Puell mentioned that “Since volatility has dramatically increased, it is pertinent to have a granular view of current volume node structure. Resistances have piled up, so any pullback must be closely watched for any sign of exhaustion. The $4,300 area is the center of mass”.
Puell thinks that it is possible to hit $2,800. If this is ever going to happen, this means that Bitcoin has dropped by 85% from its all-time high. Now, Puell mentioned that it doesn’t necessarily mean that $2,800 is going to be reached. He said that it is possible if the sell-off reaches its climax.
He said that “Weekly Gaussian bands (1) show a crucial confluence with the general $2,800 high value node zone (2). This gives a more detailed view of the nuances that come with that level in terms of potential swing and closing weekly price behavior. This general area is also supported by the 200-week MA and a good deal of buying positions (volume at time) back in September 2017”.
He further explained that “Given the strength of the downtrend and current information, a selling climax may come as soon as December and as late as February”.
Regulatory clarity is something that many crypto enthusiasts are banking on. They are looking forward to the day when institutional investors are involved in the market. Could this be the case? The Securities and Exchange Commission has been doing what it can to stop ICOs from selling unsecured securities.
And also, SEC chairman Jay Clayton even mentioned that they are still hesitant to approve a Bitcoin ETF for the reason that there is a chance of price manipulation. Unlike Nasdaq and the New York Stock Exchange that make use of surveillance tech that can trace abnormal movement in the market, this isn’t usually present in most crypto exchanges.
Even the Winklevoss twins submitted their own Bitcoin ETF application only to be rejected twice by the agency. Now, many are looking forward to the chances of the Solid X and Van Eck proposed Bitcoin ETF.
Do you think that we’ve seen the bottom for Bitcoin? Will there be another bull run soon? These are just some questions that investors have in mind at this time. Willy Woo who is the founder of Woobull.com has proposed a somewhat similar time frame when the bottom will likely emerge for Bitcoin. He also thinks that the bottom is going to become visible by second quarter of 2019.