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According to David Puell, a market analyst and Bitcoin, the dominant cryptocurrency could reach its minimum by the end of December or by the first quarter of 2019.
The $ 4,300 region, which entered Bitcoin after undergoing a 35% correction from around $ 6,600, was established as a comfortable region for the resource. With resistors stacked above $ 4,300, the analyst explained that a withdrawal from the current price could trigger a depletion in the lower range.
Puell He said:
"Since volatility has increased dramatically, it is pertinent to have a granular view of the structure of the current volume node.The resistances are piled up, so any withdrawal must be closely monitored for any sign of exhaustion.The area of $ 4,300 is the center of mass. "
Climax by December or February 2019
Based on the sharp fall in the price of Bitcoin over the last few months and the higher levels of resistance that have formed between $ 4,000 and $ 6,000, a further fall below $ 4000 could lead the market to lose much of its newly gained momentum.
A potential lower target, according to Puell, is $ 2,800, which would mean a decline of 85% from its all-time high price to $ 19,500.
But, Puell stressed that a fund can only be reached by Bitcoin if the sell-off reaches its peak, the bears lose their leverage and the market begins to show exhaustion.
Currently, the market is extremely volatile and moves up and down 10 to 20 percent on a daily basis. In the last 24 hours, Bitcoin has increased by 12% while Stellar, another major cryptocurrency, has increased by almost 15%.
"The weekly Gaussian bands (1) show a crucial confluence with the high-value knot zone $ 2,800 (2), which provides a more detailed view of the nuances that accompany this level in terms of potential oscillation and closure of the weekly behavior of the This general area is also supported by the 200-week MA and a good deal of buying positions (volume at a time) in September 2017, "said Puell, adding that the bear market could extend until 2019.
"Given the strength of the downward trend and current information, a sales climax could come not earlier than December and until February."
Willy Woo, the founder of Woobull.com, proposed a similar timetable for the end of the Bitcoin bear market. At the beginning of this month, Woo said that the market should reach its minimum by mid-2019, based on key indicators such as transaction volume and user activity of key cryptocurrencies.
Analysts generally agree that in order to recover from the intense November sell-off that caused the loss of nearly $ 80 billion from the cryptocurrency market, a period of months consolidation will be needed and that the main digital resources will have to demonstrate a relatively high level of stability in a lower price range.
Small-cap tokens have shown a promising upward price movement over the past 24 hours, with some including ICON up more than 30%. But most businesses are still declining substantially since October.
Shutterstock foreground image. TradingView Charts.
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