Home / Cryptocurrency / The analyst states that Bitcoin to test $ 2,970 is probably short-term

The analyst states that Bitcoin to test $ 2,970 is probably short-term

The cryptocurrency markets have remained stable today and have given investors a welcome relief from what looks like a constant recession, with the overall markets moving sideways after experiencing nearly two weeks of substantial price increases.

At the time of publication, Bitcoin trades down 1.1% at the current price of $ 3,730, trading uncomfortably in the last 24 hours between a range of about $ 3,640 and $ 3,800. Currently the bitcoin drops by 43% from a month's highs of $ 6,600, and one analyst believes that another short-term downtrend is imminent.

Speaking with MarketWatch about the short-term future of the market, Nick Cawley, a Daily FX market analyst, said a $ 2,970 move is very likely, which could result in a temporary rebound.

"After losing more than 40% in the last two weeks, with very little news to guide the move, Bitcoin is trying to build a base around $ 3,500 – $ 3,700 in the last three days, while the long-term graph remains negative with a $ 2,970 test probably, in the short term the charts show the cryptocurrency heavily in the oversold territory, which may produce a higher rebound, "he explained, citing the RSI index.

Related reading: Winter Cometh: Bitcoin to Equal Four-year record ending four months in a row

Bitcoin could sit under $ 5,000 for a while.

As Bitcoin is close to the lows of 2018, some analysts predict that it may take months before the markets see Bitcoin prices rise above $ 5,000.

Vinny Lingham, the CEO of the blockchain-based identity service, Civic, recently told CNBC that a crypto winter will come, during which cryptocurrency markets are likely to be trapped by their relatively low prices.

"I think it stays in the range of $ 3000 to $ 5000 for at least three to six months, I do not think we're going through the $ 3.000 support level yet, I think there's a lot of short-term purchases around that brand If we do not get out of the crypto-bear market cycle in the next three or six months, the $ 3,000 level could go, "explained Lingham.

Altcoins Stable Near 2018 Lows

Many altcoins are currently sitting just outside their lows of 2018, with the main altcoins remaining linked to Bitcoin price movements.

At the time of writing this article, XRP is trading down 2% at the current price of $ 0.35 and drops 36% from a one-month high of around $ 0.55. Although trading has declined significantly in the last month, XRP outperformed Bitcoin and consolidated its lead over ETH as the number two of cryptocurrency by market capitalization.

Ethereum has had a bad period during the last month and many attribute it to the amount of initial coin offerings (ICO) projects that are running out of their holdings in ETFs to better secure their finances. At the time of writing this article, ETH is trading down slightly more than 2% at the current price of $ 106 and is slightly disused if its 2018 low is just under $ 100.

It is not clear whether investors are ready to adhere to the old adage of buying while there is blood in the streets, or if further losses are needed to allow investors to return to the markets.

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