Expert Bitcoin investors and analysts are speculating about the sharp drop in the price of BTC from around $7,250 on Saturday, December 14, 2019 to under $6,600 on Tuesday, December 17, 2019. While long-term digital currency investors are evaluating assets stored with cryptocurrency custodial services, day-traders and others are trying to figure out the next short-term move.
On December 14, Bitcoin dropped from a high of $7,250 to $7,023, just over its support at $7,000. It then had a small bounce back to $7,133 on December 15, before dropping below that threshold, to a low of around $6,857 on December 17. It then had one more sharp drop to below $6,600 on the same day. What could this mean?
The $6,800 Bounce That Didn’t Happen
Some experts predicted a bounce at $6,800. This didn’t happen, so now people are speculating that we’re about to retest November’s $6,400 low. There are several technical trends that people are referencing for this shift, which can potentially lead to a new seven-month low. These include a bear cross on the monthly moving average convergence divergence (MACD) line, which hasn’t happened since June 2019. The MACD histogram also flipped negative, and there was a bearish cross of the 100-day, and 200-day moving averages.
Historically, Bitcoin dropped to $3,100 in November 2018 before recovering. So, we could be in for a ride.
$2B Ponzi Scheme BTC Sell-Off in China
On the other hand, this drop may not be entirely due to technical indicators. According to Chainalysis, PlusToken scammers controlled $3B worth of crypto, which included 180,000 BTC, 6,400,000 ETH, 111,000 USDT and 53 OMG. So, a recent dump could have caused ripples in the market.
HODL Your BTC
Regardless of what happens, if it is anything similar to what happened last year, then BTC will recover well. We saw Bitcoin fall to just over $3,000 on December 3, 2018, only to recover to over $11,000 in July. Some of the people who were patient and bought up that discounted BTC on the way down have seen over 3x returns on their investments.
Right now, most people will panic, while others will see this drop as an opportunity to grow their digital assets, with a bit of time. It’s also a good idea to diversify your holdings. Make sure you analyze not just BTC, but also ETH, ICOs, and other crypto market trends. Also, don’t forget that LTC and other cryptos are listed on Gemini and other trusted digital currency platforms.
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