Crypto Market Puts A Pause On Tumultuous Activity, Bitcoin Finds Stability
To say that crypto’s past two weeks have been tumultuous would, frankly, be putting it rather lightly. On November 13th, Bitcoin (BTC) was trading at $6,200, but since that fateful day, the eye of Bitcoin Cash’s network upgrade (a purported bearish catalyst), BTC has freefallen to a year-to-date low of $3,450.
While the asset has since undergone a somewhat convincing recovery, moving from $3,450 to $4,200… twice, some fear that the worse has yet to come for crypto’s de-facto king and figurehead — Bitcoin. But then again, other analysts have claimed that there are some silver linings in the cryptocurrency cloud, at least in the short-term anyway.
Analyst Calls For Short-Term BTC Bottom
Speaking with MarketWatch’s Aaron Hankin, the financial media outlet’s in-house crypto reporter, Nick Cawley of Daily FX noted that while crypto bulls can breathe a sigh of relief, Bitcoin’s bears may not be ready to let the carnage end all too easily.
Cawley, a markets analyst at Daily FX, a Chicago-based forex corporation, noted that after BTC’s most recent bout of capitulation, which sent the asset into a 40% drawdown, a short-term bottom is in its infancy. He noted that the lack of “news to drive the move” indicates that bitcoin is likely to find some support at $3,500-$3,700, even if sell-side volume continues to fester.
This call for support at $3,500 echoes sentiment held by Mati Greenspan, eToro’s in-house crypto expert, who recently noted that while $4,000 put up close-to-zero resistance, there is a semblance of buying pressure festering at $3,500 and $3,000.
And, also taking momentum technical indicators, such as RSI, into account, Cawley added that crypto assets are currently well-oversold, adding that a short-term bounce could be in order. Still, drawing attention to Bitcoin’s long-term prospects, the Daily FX representative exclaimed that a test of $2,970 is slated to occur in due time.
$3,000/BTC Remains The Community’s Flavor Of The Month
As BTC fell under $4,000 last week, falling to an over one-year low, market analysts, prominent investors, and crypto soothsayers sought to weigh in on the jaw-dropping decline, which sent retail investors scurrying.
While some critics have expressed their sentiment that forecasters are shilling their “snake oil” calls, Cawley’s aforementioned $2,970 call lines up with the predictions made by his peers. As reported by Ethereum World News on Monday, Anthony Pompliano, the founder of Morgan Creek Digital, took to CNBC’s Squawk Box segment to tout his personal outlook on the cryptocurrency markets.
The industry expert, known for his anti-bank, pro-crypto rhetoric and sentiment, drew lines to bitcoin’s two historical drawdowns of over 80%. Explaining why this statistic is relevant, Pomp noted that Morgan Creek expects for BTC to trade at ~$3,000, just 15% of its all-time high established in 2017.
Keeping this in mind, the analyst added that there’s likely further to fall, despite the already dismal market conditions that crypto has faced.
Michael Moro, CEO of Genesis Trading/Markets, also touched on this price level, telling CNBC that bitcoin has yet to find its true floor, adding that traders are unlikely to find a bottom until the “3k-flat level.”
Title Image Courtesy of Marco Verch Via Flickr
