Bitcoin Price Gets Hammered, Traders Optimistic
In the past hours (per the time of writing), the value of cryptocurrencies across the board have fallen dramatically. Bitcoin (BTC) is currently posting a 2.3% loss, falling to the $3,500 price level for the umpteenth time in weeks. Altcoins, interestingly, have had it much worse. XRP and Ethereum (ETH) have seen their values been pared by 4.2% and 5.8% respectively, with the former approaching the all-important $0.30 price level, and the latter collapsing under $110.
The digital assets on the lower rungs of the proverbial crypto ladder have had it worse. After posting stellar gains in anticipation of the BitTorrent token airdrop, Tron (TRX) has stumbled big time, posting a 9% loss in the past 24 hours. The story is much of the same for Stellar Lumens (XLM), Cardano (ADA), Maker (MKR), among a mass of other preeminent crypto assets. Binance Coin has defied the trend, with BNB posting a mere 1% loss as the launch of the upstart’s decentralized exchange nears.
Yet, despite this overall bearish price action, which cynics believe could mark the beginning of crypto’s moves to establish lower lows, some have remained a bit more on the cheery side. Alex Melen, an American entrepreneur with a love for cryptocurrencies, recently took to Twitter to tout some “Saturday optimism” pertaining to Bitcoin. In a short, simple tweet, which was issued in tandem with a similarly as simple chart, Melen noted that the last time that BTC crossed under the 50 and 200 moving average for the four-day chart was when 2014/2015’s bear season finally bottomed.
“Last time the 50 and 200 average crossed on the 4 day chart was at the bottom of last bear market.”
Credit: Alex Mishkin pic.twitter.com/F7SmvVVY4g
— Alex Melen (@amelen) January 28, 2019
Now, the seemingly auspicious occurrence has struck Bitcoin again. And as the age-old adage goes, “history rhymes, but doesn’t repeat.” So, if history really does rhyme, there’s a chance that BTC could find a longer-term bottom in the coming weeks and months, as parallels continued to get drawn between crypto’s previous and current price conditions.
Armin Van Bitcoin, a Canadian BTC diehard that has gained a notable following on Twitter, also expressed optimism. Noting that his call was against all odds, citing bearish forecasts touted by technical analysis experts Tone Vays, Tyler Jenks, Bob Loukas, and Murad Mahmudov (he claims that bottoming at $1,700 is possible), Armin made it clear that he’s bullish.
Price of $BTC is $3,550.
All these guys are pros. Professional traders and experts on technical analysis.
I’m not… I’m bullish. 🍻#Bitcoin
— A v B ⚡ (@ArminVanBitcoin) January 28, 2019
The aforementioned two aren’t the only pundits optimistic about the Bitcoin price. Per previous reports from Ethereum World News, Moon Overlord, a pseudonymous crypto trader, claimed that the fact that BTC barely moved off VanEck, CBOE, and SolidX’s ETF withdrawal indicates that a bottom is festering. Moreover, Overlord went on to cite historical analysis to express that “Bitcoin has traditionally started pumping around one year on average before it’s halving date.” And as the next issuance shift is slated to occur during May 2020, BTC could begin trending higher in May.
Crypto Isn’t To Rally… Yet
While the aforementioned comments make it seem like a rally is imminent, some aren’t too sure. According to previous reports from this outlet, Anthony Pompliano of Morgan Creek Digital, a former Snapchat and Facebook staffer, claimed that although BTC likely doesn’t have further to fall (a tad under $3,000 is possible), this market isn’t ready to run just yet.
The decentralist, who has been overtly skeptical of banks, noted that instead of falling further, BTC may begin to range trade, potentially between $2,500 and $4,500 for much of 2019. Pompliano’s comments came weeks after Fred Wilson, a leading venture capitalist, took to his personal blog to remark that the broader crypto market may take much of 2019 to bottom out.
Title Image Courtesy of Descryptive.com Via Flickr