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What’s Going on with Bitcoin?

by Pragati Shrivastava
What’s Going on with Bitcoin?

The last time I looked, Bitcoin was trading at $6970 and I closed the tab before I got too depressed. There is no surprise that Bitcoin sentiment has been heavily bearish when the price dropped from $8,088 to $7,600 yesterday, but to break below the $7K barrier has caused a lot of people to be split in their investment strategies; they’re either excited to scoop up some cheap BTC or they feel like the sky is falling. So, really, what’s going on with Bitcoin?

Currently, there are no healthy resistance levels on the upside. The BTC/USD pair recovered to $7,649 before dropping below $7K today. The daily confluence detector paints a bleak picture as there are no healthy support levels above the $7,500 mark. On the plus side, there are no healthy resistance levels either.

What does that mean?

It indicates that if the bulls manage to rally together, they won’t face many obstacles. The price may show a tiny bullish reverse, however, analysts see the market under bears’ control at the moment.

The drop below $8,000 is the first of its kind since October. After surfacing above this level briefly, BTC plunged again, this time much deeper. Did you smell the blood in the streets when the Bitcoin price dropped to $7500?

Of course, analysts assume there might still be a bullish reverse but admit the trend is still bearish.

In my opinion, a pullback to the $7,700 price point would be nice – but unlikely. And unless Bitcoin starts trading sideways at $6,500, I expect it to plunge further to $6,100 or even to $5,700. Don’t shoot the messenger. I’m just telling you what I think.

The market is fragile at the moment. As a trader, I’d like to see the price plunge before a strong comeback. It gives people who don’t have big bank accounts a chance to jump in and snap up some crypto before it rises again, if they have the stomach for a long hold game. Either way, a continuation of the price range volatility is going to continue, especially with holidays coming up. Weaker hands might be dumping to save what’s left of their liquid assets in order to salvage Christmas.

Certainly, breaking back above $8K and holding support seems unlikely at the moment. While we may not see a bullish candle on the chart, we can aim at continuation at the $7K level. If I’m being brutal, I’d say the price bottoms between $5,700 and $5,300 in the next couple of weeks, but I’m not alone in this thought. Some crypto analysts believe that the bears are in control of the market.

Now let’s give a glimmer of hope. There is a chance that Bitcoin would reverse in December.

After all the doom and gloom, how can I turn around and say such a thing?

For one, Bakkt plans to launch cash-settled Bitcoin futures; the key words being “plans to.” Earlier this year, Bakkt rolled out Bitcoin-settled BTC futures but the price of the flagship crypto dropped due to low and disappointing trading volume. It’s possible that there wasn’t enough marketing and community support to move the needle much, but Crypto Twitter swept up with Pomp and CZ talking about buying the dips. And while Pomp threw some money down, CZ didn’t have any fiat to do so. That might be a red flag to some people, but here’s something to consider. Perhaps CZ not having fiat is a bold way to emphasize his trust is truly in crypto.

And one last point: Buying the dip almost always reaps profits for those who don’t trade frequently because looking at the market history of Bitcoin over the last decade, we know that it hits a plateau before it shoots up again. We’re hedging our bets that that’s where we’re at right now.

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