TL;DR Breakdown
- Bitcoin price prediction expects a rise to $38000.
- If Bitcoin loses crucial support it can fall down to $25000.
- Strong resistance currently lies at the $36500 mark.
- Strong support currency lies at the $35000 mark.
The bullish momentum appears to have toned down for the king of cryptocurrencies and it has dropped lower with indications that the drop can continue further. As for the past 24-hours, Bitcoin peaked at $36,700 while the 24-hour low was found at $33,960.
At the time of writing, Bitcoin is priced at $35,739. Bitcoin price saw a 1.97 percent downturn in the past 24 hours, while the market capitalization amounts to $653.247 billion and the trading volume amounts to $52.36 billion.
The market sentiment for the cryptocurrency is still majorly bullish. Out of the 28 technical indicators, 13 are giving out a buy signal with nine neutral and six sell indications. Eight of the 11 oscillators are neutral with two buy indications and one sell indication. 11 of the moving averages stand at buy whereas five are at sell with one neutral indication.
Bitcoin price prediction: What to expect?
Analyst Vince Prince has identified various important structures in his Bitcoin price prediction and per the analyst, the upcoming Bitcoin price actions will prove to be crucial for its future trajectory. Prince states that Bitcoin is developing a reverse head & shoulder (H&S) formation and a major decision zone will clarify whether Bitcoin will break out towards the upside or down from the formation. The analyst furthers the exponential moving average EMA-30 – in red – is acting as strong resistance for Bitcoin and the next important EMA, the EMA-140, lies on the neckline of the H&S formation.
Prince furthers that if Bitcoin breaks out downwards at the decision zone, it will enter a C-wave extension zone where it can go as low as $25,100 before it finds stable support. On the flip side, an upwards break out will indicate the cryptocurrency moving towards $38,500, where it will encounter strong resistance. Prince suggests that patience must be practiced, and trades should be based on the right confirmation as a false bearish or bullish confirmation can result in huge losses.
Bitcoin price plunge stirring questions
Bitcoin’s all-time high at $41,000 at the beginning of the year led to various Wall Street giants investing in the king of cryptocurrencies. The rally was headed by MicroStrategy, which invested $425 million, amounting to up to 85 percent of its cash reserves. Others such as Square and Miler Ventures followed suit.
All seemed well as long as Bitcoin was performing well but the cryptocurrencies are unforgiving, especially the king. A plunge of 25 percent from the all-time high put Wall Street companies that had invested a huge sum in the cryptocurrency in a precarious position. It is a known fact that cryptocurrencies are high-risk and high-reward assets, despite what the Bitcoin price predictions may have in the store. What is, then, the viability of investing a company’s cash reserves in such an asset?
Although some investors remain undeterred as the cryptocurrency’s long-term potential is more than good as per various Bitcoin price predictions. But the dive has, nonetheless, raised questions. It is not only the infamous price volatility of the cryptocurrency but factors such as susceptibility to hacking, fraud, and the ever-present threat of tightened regulations that also need contemplation. Investing cash reserves in Bitcoin can be a smart strategy but at what cost?
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