$3500 USD; The New Bitcoin Support Line
The cryptocurrency market over the last month has had a terrible week, to say the least. It has hit a new all-time low after almost a year of relative stability. Over the past week, Bitcoin has also breached the $4,000 USD barrier and sunk down to $3,900 USD.
The reason for this sudden decline that the market has taken are many. But the fact of the matter remains that the market crash for the Bitcoin is far from over.
There is always a reason for a market crash and this time was no different. While it is not a sure shot reason, the cryptocurrency market’s fall is a reaction to recent activity in the market.
The first most obvious reason for the Bitcoin crash is that the world’s first and largest cryptocurrency was caught in the eye of the Bitcoin Cash storm. The scheduled network update of the cryptocurrency triggered a hard fork in the cryptocurrency which further led to a hash war between the two competing sides.
Another reason that could have contributed to the crash in Bitcoin prices is the fact that the SEC took the ICO sector head-on. Fining companies that had not delivered on their promises and had inadvertently embezzled funds that were contributed by the community.
The third reason was a reason that was prophesied at the bull in 2017. The cryptocurrency market and all its altcoins peaked at that time and as the market commands, anything that goes up must come down. And so this year-long bear was predicted and very much expected by the community.
Changing Support Line
In the second week of November when the cryptocurrency market started to fall, Bitcoin was at a comfortable $6,200 USD. However, a couple of days later the Bitcoin market had plunged to rock bottom.
While this decline in the market and Bitcoin in particular, was expected after the bull in December last year, nobody expected the market to go so low.
The first support line that was predicted by a financial investment advisor to be $5,000 USD. But soon after the prediction was made, the cryptocurrency market fell below that as well.
With this in mind, new predictions were made in $4,000 to $5,000 USD range but by then Bitcoin had already fallen below $4,000 too. The standing prediction after $4,000 was set at $3,700, but given the market’s status as of now, financial advisors and the community are not so optimistic.
New Support Line
With the market falling into new lows, the market support line has been revised. In almost digit level agreement, the experts in the cryptocurrency market and community have predicted that the new support line is at $3,500 USD but the bear is far from over.
The New Bitcoin Support Line Click To Tweet
Far From Over
With Bitcoin plummeting and other altcoins reacting to the same, new predictions are being made as of the support line. And with little to no indication of the cryptocurrency market recovering anytime soon, the community is convinced that the bear is far from over.
The current prediction for the cryptocurrency market and timeline that has been set for its recovery is well into the second quarter of the next year. The Bitcoin is expected to remain at this all-time low for atleast another 6-8 months.
Currently, Bitcoin is trading at $4,024 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.