Bitcoin’s pending “death cross” has left investors worried and confused.
According to a graph posted by Bloomberg, the 50-day moving average is getting close to the 200-day moving average. If it touches the latter, or worse, goes below it, bitcoin will suffer a great loss.
Considering these trends and comparing these activities to BTC’s price in 2013, technical analyst Paul Day from Market Securities Dubai Ltd., has claimed that the value will eventually drop to $2,800. “There’s been a definitive shift over the past couple of months after the bubble activity at the end of 2017,” said Day.
When do we reach maximum pessimism and how much influence will technical trading have against the change in the financial world that is not leaving the world with much more options then a change? Yes, you might be right, the change does not necessarily have to be bitcoin or cryptocurrencies but at the moment there is no other option..
The traders analyze but have in the past failed because volatility is produced by traders while the increase in price and the aim of many governments to regulate the market is much more showing first signs of a change in the system.
2013 is often remembered as one of the worst crashes in BTC history. First, the price dropped from $233 to $67 in April, a 71% drop in 12 hours, then the price remained extremely volatile in the last two months. It broke records on Nov. 30, 2013 with a value of $1,126, but declined by 19% within 24 hours, only to recover on Dec. 5, 2013 to $1,155. The price kept decreasing by 41% and increasing by 47%, before dropping to a surprising value of $503 on Dec. 19, 2013. From an all time high of the first week of December, the price had declined by 56%. The price drop was such that it took bitcoin over three years to finally cross the $1,000 barrier again.
Day isn’t the only analyst predicting a low value for bitcoin in the future. Robert Sluymer, technical strategist at Fundstrat Global Advisors, wrote that “Bitcoin will begin to show evidence of bottoming short-term closer to $5,873.” Charlie Munger, Vice Chairman of Berkshire Hathaway Inc., has openly called bitcoin “a noxious poison”. Munger also called it disgusting and said that he hated it ever since it was created.
What is no surprise that people who do not like the change and the development to a new area speak bad about Bitcoin and predict it to fail. But all in all there are many signs that the errors in the fiat currencies will show up and people slowly become aware of it. As this will develop fairly quick Bitcoin has the chance to reach completely different prices and a few people have already outspoken what might happen..
Meanwhile, bitcoin bull John Mcafee predicted that the price will reach $1 million by the year 2020. Even Jamie Dimon, JPMorgan Chase’s chairman and CEO, who previously called BTC a ‘bubble’ has amended his statements. “I regret making comments saying Bitcoin is a fraud. The blockchain is real. You can have crypto yen and dollars and stuff like that, ” said Dimon.
Bitcoin as currency or as store of value? Who knows? But the story is far from finished.