- Bitcoin price Analysis highlights BTC’s price dip continuation over the weekend trade session, leading to a 3-month low.
- According to Tom Lee, the Managing Partner and Head of Research at Fundstrat, Bitcoin is likely to surge towards the $120,000 region in the near term.
- Elon Musk is being accused of plummeting the number one crypto a few weeks after advocating for its adoption.
At the time of writing, the future of the cryptocurrency looks insecure following the continuous price plunge of the number one crypto coin, Bitcoin. Although the crypto-asset managed to surge past the $50,000 mark briefly over the weekend, a sudden breakdown followed, pushing its price to new lows.
Bitcoin Price Analysis: General price overview
At the time of writing, Bitcoin is exchanging hands at around $47,500 after suffering a massive price dip. The current price region roughly signifies a 30 percent price drop from its recent all-time milestone near the $65,000 price region. Apart from the price, Bitcoin’s market capitalization has also suffered immensely, dropping to about $800,000 billion. The current state of the number one cryptocurrency appears to be affecting the entire market as the market capitalization of all the other crypto assets has fallen to $2 trillion.
The question on everybody’s mind is what is leading to this sudden price movement. Well, most analysts claim Tesla CEO Elon Musk is to blame for the misfortunes bedeviling Bitcoin and the entire crypto market. Earlier this year, Elon emerged as a cryptocurrency ambassador with his unwavering support for Bitcoin and Dogecoin. It is on record Tesla bought more than $1 billion worth of Bitcoin tokens while accepting it as a mode of payment for its vehicles.
However, recently, Tesla dropped a bombshell on Bitcoin after disclosing the suspension of Bitcoin payments on its platform. This is due to the coin’s high energy cost during mining and transaction processing. At present, Tesla still holds its Bitcoin holdings but has given conditions to the crypto network to adopt sustainable energy. Presently, Bitcoin depends on fossil fuel in its mining and processing activities.
On looking at Bitcoin’s weekly price chart, it is evident that Bitcoin has been facing substantial resistance in the past few days. Its quest to move past the $60,000 price level has been met with a lot of resistance that has lead to a breakdown below the 23.5 percent Fibonacci retracement level. Presently, Bitcoin is quickly approaching the 38 percent Fibo retracement level, indicating the bears are having a field day with the crypto asset.
It is also worth noting that the bellwether crypto coin has plunged below its 25-week moving average. This indicates the current bearish leg is likely to continue as bears look to push Bitcoin’s price below the $35,000 price region towards the 50 percent Fibo retracement level. If Bitcoin decisively closes the day above the $50,000 price level, the ongoing bearish leg will be invalidated.
Bitcoin price movement in the past 24 hours
On looking at Bitcoin’s 24-hour price movement, it is clear that the crypto-asset plunged first to $48,486 before recovering to its current $47,500 value. The overhead and selling pressure appears to have gained momentum over the weekend from the look of things. Despite the negative news, Bitcoin’s transaction fees also appear to have fallen by about 80 percent over the last few weeks, a move that is likely to invite the bulls.
Bitcoin 4-hour chart
On the 4-hour chart, Bitcoin’s Relative Strength Index shows the crypto coin is currently facing oversold conditions. What this means is Bitcoin is likely to start a price recovery. As for its Moving Average Convergence Divergence (MACD), the technical indicator paints a bearish picture. If Bitcoin breaks past the $45,000 mark, it will open the door for further surges towards the $50,000 mark. Failure to do so might lead to further declines towards the $40,000 mark.
Despite Bitcoin’s massive price plunge over the last few weeks, Tom Lee, the Managing Partner and Head of Research at Fundstrat, remains optimistic on BTC. While talking to media outlets, the renowned analyst recently stated that Bitcoin is likely to surge towards the $100,000 to $125,000 price range before the end of the year. With that said, the ongoing bearish market might be a blessing in disguise for long-term investors.