Tuesday, February 6, 2018

Will Bitcoin Rise Again? (Hint: It Will Drop to $5,500)

The bloodshed in the crypto world continues. The weaker hands are falling victim to FUD and panic selling, which is continuously pushing Bitcoin to unexpected lows.

And as it stands, things aren’t looking any good at the moment.
Will Bitcoin Rise Again
Bitcoin broke a major support at $7,500 a few hours earlier. This means there’s a very high chance that it could tumble down even further, testing another crucial support at around $5,500 level. So don’t be surprised if in the next few hours and days price slips from the current level, which is at $7,370 according to Coinbase, to critical lows.

Also Read: How to avoid Bitcoin Panic Sell

The Bearish Trend Will Last Longer

Bitcoin Price Trend - Will Bitcoin Rise Again
While in the past 200-days MA has kept Bitcoin in the green territory for the long-term purchase, this time that strong support failed to hold.

Currently, RSI is below 30 levels, in the oversold territory. This, when compared to historical trends, suggests that Bitcoin price will fall and market volatility will continue until we see what happens next when the $5,500 level is tested.

On the other hand, the good news is that many experts believe that Bitcoin is bottoming out. The bottoming process could start in few days before market volatility diffuses and Bitcoin gains a good ground to embark on an upward trend.

Will Bitcoin Rise Again?

Will Bitcoin Rise Again
Yes, it definitely will. To get on a full bullish mode, the market can take anywhere till 4-weeks to regain its composure and stride up.

However, a lot depends on the kind of news we hear in the mainstream media in the coming. After all, that’s what is triggering panic selling among retail investors.

China is implementing a stringent crackdown on Bitcoin trading. South Korea is following a similar path when dealing with anonymous cryptocurrency exchanges. Few banks have banned its customers to use credit cards to purchase Bitcoin. The fake news of Bitcoin ban in India after the comments of Finance Minister Arun Jaitley on Bitcoin in Budget 2018 speech has scared many.

If more such news keeps coming and making headlines in the mainstream media, more people can end up panic selling Bitcoin.

Also Read: What to do if Bitcoin becomes illegal in India

What Should You Do- Hold OR Sell?

Will Bitcoin Rise Again - What Should You Now?
As aching and ridiculous it may sound, holding is the best option right now. Hold and see where the market goes. It definitely will go higher in the coming weeks and months. But all depends on the kind of patience you have.

If you’re already at loss, there’s no point of selling. If you’re approaching loss, set a suitable stop-loss position for a part of your holding-- and not entire. If you’ve got more capital, place a buy order at around $5700.

Times such as these, while they might look deadly, bring more opportunities to buy at an extremely low price— even more opportunities to those who day trade.

Just sit back and relax. Avoid panic selling at all cost. The current situation suggests Bitcoin can be bottoming anytime soon. And after the market recovers from the current shock, we can see bulls running in a month or two.

Read: Bitcoin Price Prediction 2018

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