Bitcoin is now 73% down on 2018, but opportunities are still there

Chris L
Category:  Financial News
The Bitcoin epic collapse in 2018 is accounting now for a 73% drop in BTC/USD valuation in the present year as investors got worried after the pair broke below the critical support at 6,000 on November 14. 

The break comes as the Bitcoin Cash hard fork pushed the crypto world in a civil war and most of the cryptocurrencies under pressure. 



The 6,000 level was a key support that was successfully defended by bulls in the past months; however, the Bitcoin Cash hard fork was a catalyst that sent the unit below there, activating stop losses that pushed the pair even deeper. 

BKCM CEO Brian Kelly said last week in an interview. "So, we've got ourselves a crypto civil war," Kelly said, "People started selling. That triggered stops. Everybody got concerned." Then bulls gave up, and bears took the control by a massive majority.

Since November 14, BTC/USD fell 41%, ETH/USD collapsed almost 50%, and the BCH/USD dropped 67%. However, in the last days, the crypto world seems to be recovering some calm. 

Will bitcoin rise again?

Bitcoin is now trading at $3,671.85, 1.64% negative against the US Dollar on Tuesday. The BTC/USD is in consolidation mode following the significant drop performed in the last two weeks. The pair is defending the 3,500 area. 

Below the $3,500 area, there is no hope for the BTC/USD until it arrives at the $3,000 level, the lowest level since September 2017. It looks like pretty decent support that can change the fate of Bitcoin bulls. The $3,000 level was the one who built up the first leg of the 2017 run. So, you may want to pay attention to that level. 

Below there? $2,000 and even lower with Bitcoin returning to the $1,500 area for the first time since April 2017. Technical indicators suggest more drops in the short and middle term. The chart is pretty much dovish.

On the bright side, Bitcoin volatility is providing a lot of opportunities for traders that are willing to trade short on the pair and also contrarian investors. The $3,000 support should work as an essential level that would provide a decent bounce to take profit at least in the short term. 

However, is the pair manages to hold levels above $3,500, the next resistance is identified at $4,000, then, the $4,600 line will be the frontier before attempting for a full recovery above the $5,000 area. 
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