Bitcoin price dropped from 8000$ to 3800$ last week, but recovered later to 5900$, and closed the last week candle at 5300$. Bitcoin also lost important price support of 5500$, which was 200MA weekly support.
200MA weekly support was a long term support for bitcoin, Bitcoin price managed to hold this support for 4.5 years. Last time in 2018, bitcoin price rebounded from this support and reached 13500$ few months later.
At the current situation, Bitcoin is following Global stock markets, and stock markets are sinking because of ongoing Global pandemic coronavirus.
Bitcoin hashrate which was looking quite positive few days back, also started dropping and current measured below 100,000,000 TH/S. Bitcoin hashrate lost 20% network value in last few days.
Let’s look at Bitcoin Technicals to find out when bitcoin could find the bottom?
Comparing with Nov – Dec’ 2018 Fractals
If we compare current price action with previous high volume sell off during nov-dec’2018, than we can find bitcoin may drop below 3000$ before finding a bottom. In the chart mentioned above, we have used bar patterns from Nov-Dec’ 2018’s Bitcoin daily chart to predict upcoming price action.
If Bitcoin follows the same fractals from the past than bitcoin could drop below 3000$ before finding a bottom.
Author: Hitesh Malviya
Source: Its Block Chain: Bitcoin lost 4.5 years old support, drop below 3000$ possible