The global Market collapse of recent weeks has shown no signs of an imminent slowdown, and Bitcoin was exposed to the impact of this development significantly – from a peak of $ 10,500 in the year 2020, it is clearly dropped.
A prominent Investor within the Blockchain and crypto currency industry, notes that investors should keep an eye on some of the critical factors that could give an indication of how deep the price will fall before a long-term low is reached.
Due to the recent decline of Bitcoin below its 200-period moving average, he is of the opinion that BTC could drop to $ 3,000, before he reached his low.
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Bitcoin is struggling for support, analysts see further downward movements
At the time of writing Bitcoin for 5.300 Dollar trade, which stands an increase of the daily low at about $ 4,500 marks that were set at the top of today’s sell-out early in the Morning.
The current selling out to the crypto-markets, goes hand in hand with the US markets, the Dow Jones, the S&P 500 and the Nasdaq today, almost 10 percent are gone.
Chris Burniske Partner of the venture capital Fund Placeholder – explained on Twitter: He believes that BTC can go back up to $ 3,000, before he finds sufficient support.
“Many people ask, where BTC has reached the bottom In short, I would be surprised if we were to test our lows from 2018 in the vicinity of $ 3,000 once.“
This decline would mean – should it materialize – a decline of 40 percent compared to the current prices, and a decline of over 70 percent compared to the mid-February set maximum levels by 2020.
A technical factor that supports the theory that BTC could fall much more
To justify this forecast, explained Burniske, the slide indicates the end of (recently Bitcoin insufficient) the 200-day average, probably the fact that BTC might drift in the coming weeks to bottom before he finds significant support.
“Historically, I put myself on the 200-week Moving average (yellow line below) as one of our all-time low in the bear market, but we are on the last Thursday at ~ $ 5,500 by fallen… But the next really strong support, I see, is our last low (lower $ 3,000). Last Thursday, there were offered as Futures in about this size…“
These above-mentioned support may be sufficient to bring enough momentum into a crypto-growth spurt – although this could mean that the market will see in the coming days and weeks, significantly more blood.