Bitcoin lost almost 5% of its peak on Sunday; nevertheless, it is still about 8% higher than the new low of 2018 reached on December 7th. The cryptocurrency market managed to recover in the short term, but the bulls are losing their enthusiasm amid gloomy sentiment.
On intraday charts, the BTC / USD pair dropped below the middle line of the Bollinger band (1-hour chart) and found support at the level of $ 3,460, created by SMA100 (1 hour). This support is followed by a level of 3,440 US dollars, reinforced by the lower line of the above-mentioned Bollinger band and SMA50 (1 hour chart).
A steady downward movement will lead to new sell orders and push the price first to $ 3,300, and then to $ 3,211. On the other hand, we should see a steady recovery above $ 3,605 (the lower border of the Bollinger band is weekly and the upper limit of the Bollinger band is 1 hour). This recovery will reduce immediate bearish pressure and allow crypto investors and traders to take some time off.
The long-term picture for Bitcoin looks positive. Bobby Lee, co-founder of BTCC, stresses that it is not the first time that Bitcoin has lost almost 90% of its value. And if we are guided by previous experience in cryptocurrency markets, then sooner or later we will see a strong recovery:
If the story repeats perfectly, then the current bearish Bitcoin market will reach $ 2,500 in January 2019. And the next rally will start at the end of 2020, the BTC will reach a maximum in December 2021 at the level of $ 333,000, and then in January 2023 it will collapse again to $ 41,000.
And what do you think about this?
