Bitcoin could fall below 3000$
With the cryptocurrency market falling and fluctuating unusually over the past couple of weeks, the cryptocurrency community is worried as to the future of the market. The king of the cryptocurrency market; Bitcoin, has fallen below the $5,500 USD mark and has brought down the other altcoins in the market as well.
While this was bittersweet for Bitcoin, because it’s dominance in the market went up by a considerable amount, for the market as a whole this comes as bad news. The cryptocurrency market, with Bitcoin in particular, has been fluctuating drastically between $5,500 USD and $6,500 USD and the market capitalization has also taken a hit.
The true cryptocurrency enthusiasts and HODLers of the market are optimistic about the market and the currencies rebounding. But some experts believe that the time for optimism is long gone.
Financial researchers at Element Digital Asset Management believe that the falls that the cryptocurrency market has taken over the last three months are just the beginning. And are a part of a larger downward trend.
From extensive research and market analytics, the researchers at Element Digital Asset Management have identified the approximate range that the cryptocurrency has been fluctuating. They say that over the past three months Bitcoin has been dwindling between $5,500 and $6,500 USD. With this in mind, they have concluded that the Bitcoin price will fall sub $3,000 USD before it sees any gains.
The researchers have also said that the cutoff support line for Bitcoin is $7,000 USD. Below which falls cannot be predicted or supported further. With the establishment of the support line of Bitcoin, the company has also stated that the cryptocurrency Bitcoin and all the other coins will fall further. The estimated fall at this point is below $3000 USD.
Will Fall Further
The investment advisory firm, Element Digital Asset Management’s officials have remarked the following in reference to their recent findings and recommendations.
“Within our own team, we tend to believe the [crypto] market is in an ultra reflexive state currently. It moves within a range in response to seemingly every bit of news.”
In reference to the price trend of the cryptocurrencies, the firm further added the following:
“This is likely the result of trading having been dominated by short-term players that are using structured derivative vehicles with leverage to express intraday speculation.”
The company has also gone on to establish the fall point of the first cryptocurrency at $3,000.
Sign of Caution
The investment advisory firm has called the fact that the cryptocurrency hasn’t been able to break the $7,000 USD mark as a sign of serious concern. Over the last week the altcoins market has also lost over 18% individually and collectively.
Currently, Bitcoin is trading at $5,488 USD.
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.