FxWirePro: BTC/USD plummets to fresh 2018 low, bias bearish
Tue, 20 Nov 2018, 10:23 am UTC
(Refer BTC/USD chart on Trading View)
BTC/USD continues to trade in the red on Tuesday as bears flex their muscles. The pair has broken below the key psychological level of $5,000 to hit a fresh 2018-low of $4,237 (Bitstamp).
It is currently trading at $4,435 at the time of writing.
The pair’s upside is being capped by $4,640 (1h 10-SMA) and a break above would see it testing $4,782 (1h 21-EMA)/$4,994 (2h 21-EMA). Further bullish momentum would see it targeting $5,137 (5-DMA)/$5,270 (4h 20-SMA).
On the flipside, the pair is likely to find support at $4,133 (113% extension of $19,666 and $5,920.72) and any violation would drag it to $4,000. Further weakness would see it testing $3,800/$3,500/$3,130 (1w 200-SMA).
Momentum studies are bearish with no major sign of reversal. The pair is trading well below major moving averages. Caution is advised as RSI and stochs are at extremely oversold levels.
The market seems to be divided over bitcoin price predictions.
Tom Lee, co-founder of Fundstrat Global Advisors, believes that growing institutional interest will boost bitcoin’s value by the end of 2018. He is placing his bets on recovery, even though he has lowered his year-end target for bitcoin price to $15,000 from $25,000.
Crypto experts Eric Piscini, former Global Head of Blockchain at Deloitte and current CEO of Citizens Reserve, and Natalia Karayaneva, CEO of Propy, told TokenPost last week (when bitcoin was trading around $5,500) that the current price levels are much more indicative of the current value cryptocurrencies.
Analysts at Bloomberg Intelligence expect bitcoin price to fall further. In a report dated November 16, Bloomberg said:
“Analysts predict the price could fall to $1,500, which would indicate another drop of more than 70 percent from current levels.”
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