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Fresh decline in the market is considered by some to expose Bitcoin price to a potential return to $7,400. In contrast, other analysts suggested that BTC’s recent trading into a falling wedge is a bullish pattern.
Bitcoin seems to continue this week’s losses. After yesterday’s sell-off, crypto markets continued to fall and Bitcoin price fell below the $8,200 threshold. At the time of writing it was still in the fall by 4.81% to $8,148.80.
The correction of the market is more than obvious because, at the time of writing, all 30 biggest coins were declining with major losses. But, not to get too pessimistic, it only means that in last month Bitcoin price is mostly flat. Some analysts think this fall could expose Bitcoin to a potential return to $7,400.
Zoomed out version;
▫️ Still in the golden pocket area here at $8,400 zone.
▫️ Holding here would flip $8,400 support.
▫️ Overall still downwards trending.
▫️ Losing $8,400 would make bias turn to $7,400.
But overall still not bad. pic.twitter.com/JDWKE8R9Pn
— Crypto Michaël (@CryptoMichNL) November 17, 2019
$BTC 4 Hour RSI
RSI has broken through both major descending resistances. Price usually follows. pic.twitter.com/Axbh932NQt
— The Wolf Of All Streets (@scottmelker) November 17, 2019
However, some analysts don’t agree claiming that this is a typical bullish pattern that usually breaks to the upside with a success rate of 68%. A bullish break to the upside would imply a target of around $9,000.
On the other hand, just last week the CEO and co-founder of Distributed Lab Pavel Kravchenko said that Bitcoin price could “crash to zero” in the event of mass adoption by institutions. He said:
“Bitcoin is censorship resistant money, the first in the world. I don’t believe in institutional adoption. If this happens, Bitcoin will become not censorship-resistant. Then it won’t have this feature anymore and will crash to zero.”
In the meantime, Ether (ETH), the second-largest cryptocurrency by market cap, is trading down 4.2% at $177.23.
XRP, the third top cryptocurrency by market cap, has dropped 5.25% on the day to trade at 0.249 at the time of writing.
Total market capitalization amounts to $223 billion as of press time, as recorded by CoinMarketCap.
Is Crypto Winter Coming Back?
Cryptocurrency analyst Cole Garner recently spoke about how miners might be capitulating. And, if you look at it, the Bitcoin Hash Ribbons (an indicator tracking the health of the network’s hash rate) saw a bearish crossover, with the short-term moving average crossing below a long-term one, signaling that miners have stopped expanding their farms. He tweeted:
MINERS ARE CAPITULATING
1/ Hash ribbons is on the brink of inversion. That’s news you never want to hear.
— Cole Garner (@ColeGarnerBTC) November 19, 2019
The thing is, says Garner, the bearish crossover of the hash ribbons in 2016 “kicked off an immediate 30% drop.” A 30% drop from current price levels would put Bitcoin in the $5,700 range. And, that is pretty much it folks. This means the last chance to buy BTC at low prices as these. Garner noted that if the capitulation snowballs far enough, the cryptocurrency market will provide investors that stick around with a “generational buying opportunity.”
But let’s turn to the reasons why Bitcoin (and the rest of the gang) might be falling. Some media refer to Google‘s last partnership with financial institutions where the company introduced a new project, code-named “Cache,” that offers checking accounts to Google Pay customers. This means the company is entering into the digital finance arena, after Apple, Amazon and Facebook. However, cache doesn’t seem like an option to us (more like a paid reason).
The truth is, the halvening is coming and it might have not such enormous price gains. Cryptocurrency market analyst Willy Woo said that the Bitcoin price might not experience another massive price rally this time around.
NEVER gone into a halvening in BEARISH price action, miners already capitulating adding sell volume. Historically we front run with a BULLISH setup, miner capitulating only after halvening when revenues are slashed. This is a unique setup. Quite bearish leading up to the event. pic.twitter.com/20748Zv8aQ
— Willy Woo (@woonomic) November 18, 2019
Since the BTC price fell from its yearly high of $14,000 to just $8,100, Lee explains this move has pushed a lot of weaker miners to the sidelines. And yes, miners are on the verge of capitulation if you think that the block reward will be reduced from 12.5 BTC to 6.25 BTC so, yes, it’s easy to say we can expect another huge hash drop (around 60%).