Bitcoin (BTC) All Set To Hit New Yearly Low This Week

Bitcoin (BTC) All Set To Hit New Yearly Low This Week

Bitcoin (BTC) has continued its decline below the 21 EMA as can be seen on the 4H chart for BTC/USD. The price is all set to drop further in order to hit a new yearly low by the end of the week. All the technical indicators favor a drop to $3,000 or slightly lower before the price can recover. RSI for BTC/USD shows room for further decline. As the price did not recover as expected after dropping to the current yearly low, it was understood that neither the bears nor the bulls were convinced that it was over. A final drop below $3,000 will convince both parties that the sell off is over for now and the recovery can begin.

If Bitcoin (BTC) continues to drop and settles below $3,000 and $2,900, it will convince a lot of investors waiting on the sidelines that the bottom is finally in, even if it is temporary. If Bitcoin (BTC) puts in a bottom here, it will be expected to rise all the way up toward $6,000 to test previous market structure. That is a 100% return on investment from $3,000 and a lot of people are going to want to make this investment. This is why the climb from $3,000 to $6,000 is going to be a quick one. We are likely to see all of this happen between mid December and early 2019. Nothing in this market changes hearts and minds like consistent reds and greens on Coinmarketcap. Negative sentiment prevails at the moment but as we have seen before, sentiment does not take long to change.

The majority of traders in this space are bullish on Bitcoin (BTC) long term. They realize that it is here to stay and would soon be worth hundreds of thousands of dollars in a few years time. So, even if they are bearish short term, they have the big picture in mind. So, soon as they see the price starting to move up, they FOMO in because deep down, they are bullish on Bitcoin (BTC). With the completion of each and every market cycle, we see a new group of investors and traders turn from amateurs into experts. Exposure to an entire market cycle teaches them a lot more than they realize. This is information that helps them during subsequent cycle, so they have an edge over the people who are yet to get into the market.

Adoption level for Bitcoin (BTC) is still very low. The people who are buying Bitcoin (BTC) now are early adopters. If we look at the daily chart for BTC/USD, it is not hard to see where Bitcoin (BTC) could go from current levels. If you have been around when Bitcoin (BTC) was at $1,000 you would remember how people who called for $10,000 got ridiculed and laughed at. Tim Draper who now sees Bitcoin (BTC) at $250,000 called for $10,000 back then. Even a lot of Bitcoin (BTC) bulls did not believe him. They had just been through a series of bear markets.

 Now, the drops we see today have at least some sort of method to it. Back then, it was a whole different game. Bitcoin (BTC) did not have acceptance in the outside world. Most people thought it is used by people who want to do something shady. We have come a long way from there. Bitcoin (BTC) clearly has room for a further $500 decline from current levels but it is very important to keep everything in perspective. The big picture should be borne in mind. This is the time to find opportunities to go long, not short.

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