Bitcoin is trading around $3,700 dropping below $4k support. Now, all eyes are on the support area between $3,500 and $3,000. According to experts and analysts, the bottom is now not that far away.
Crypto Winter Worsens, Bitcoin Down over 80% from ATH
At $3,730, Bitcoin is currently trading with 24-hour losses of 6.19 percent. With a market cap of $64 billion, the leading cryptocurrency is managing the daily trading volume of $6.5 billion.
Bitcoin 24-hours price chart, Source: Coinmarketcap
The ongoing crypto winter worsened on the weekend when Bitcoin dropped below $3,500 for the first time since September 2017. At the moment, Bitcoin has plunged about 81 percent from its peak in December last year.
David Puell, a crypto enthusiast who does bitcoin and market analysis shared a Twitter thread about Bitcoin bottoming.
1/ BAD NEWS: We haven’t bottomed yet.
GOOD NEWS: The bottom is not that far away.
— David Puell (@kenoshaking) November 27, 2018
Popular crypto trader, Eric Choe shares,
Bulls are starting to show some temporary bottom strength. 🙊
Holding the lows currently… 🤔
— Eric Choe (Mr. Swing Trade) (@CryptoChoe) November 27, 2018
Anthony Pompliano of Morgan Creek recently in an interview said,
“85% from the all-time high is about where we’ll end up. Puts it around $3,000. Came close over the weekend but probably a little bit more to fall.”
He further shares that Bitcoin has been rather overvalued and is seeing a healthy correction now,
“Bitcoin was overvalued in December ‘17. There’s more sellers than buyers this year. So the price goes down. But there’s three things you gotta remember. The first is, this is a transaction settlement layer. It’s the most secure in the world. It’s got to be worth something. It can’t be worth zero.”
Pompliano says it is the “second is it’s the best performing asset class in the last ten years,” having outperformed Nasdaq, S&P “during the longest bull run.” Moreover, last year’s peak was all retail but now institutions have entered the market that are not buying on exchanges.
“(Institutions) are actually buying on the OTC market, which we don’t have great transparency into or insight. So what I think you’re seeing is the washout of these retail investors […]”
While Civic CEO Vinny Lingham says Bitcoin trading will be range bound between $3k and $5k for about three to six months. However, he also says,
“If we do not get out of the crypto sort of bear market cycle in the next three to six months, that $3,000 level could go.”
Buying BTC at its current price according to Ligham is too risky as he explains,
“I think, the risks right now outweighs the upside in the short term anyway. There will be better opportunities later on. You may have to pay a bit more, but […] buying in at that level [$5,700] or $6,000 in the future would be obviously higher price, but you will be more de-risked if Bitcoin can get back to that level and make a run back to its previous highs.”
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