Over the last week, Bitcoin’s price dropped by almost 30% to a new BTC 2018 low. For the first time in more than a year, Bitcoin is trading below the $5,000 mark.
The value of other cryptocurrencies has also declined in the past days and weeks. Most notably, today Ethereum is traded for a mere $138 on Bitfinex, in contrast to the $1000+ this time last year.
Is this the bottom for Bitcoin?
According to Bloomberg Intelligence analysts, the drama is only just starting. They predict that the BTC price could fall to as low as $1,500, a further drop of more than 70 percent from current trading levels.
Last weeks’ BTC break below the major support level of around $6,000, left analysts calling $4,500 and $3,500 the next potential support levels, in a new wave of bearish targets. Today, BTC fell below the first support level of $4,500 currently trading at around $4,400 and falling rapidly.
Chart indicators seem to be a further confirmation of the bearish trend with Bitcoin currently trading well below the 50, 100 and 200-day moving averages. The RSI, however, is in oversold territory the daily chart, so a short-term spike in the price or a consolidation around the $4,500 price point is possible.
Why is Bitcoin’s price falling?
Mike McGlone, the Bloomberg Intelligence analyst who warned that the slide could get much worse. McGlone seems to think that the cryptocurrency Bitcoin Cash (BCH) and its recent fork is one of the main reasons for the decline, stating that
“sparked by the pump for the Bitcoin Cash hard fork,”. “That pump that began a few weeks ago, got the market a bit too offsides with speculative longs playing for the good old days. But this is an enduring bear market.”
Bitcoin Cash (BCH) is of course in itself a cryptocurrency which was forked from Bitcoin (BTC), and even managed to get to the second highest capped cryptocurrency globally at one stage.
A further justification for the price decline is said to be the Nvidia Corp. weak sales forecast for the current quarter. This is on the bases of predicting a loss of demand for its graphics chips, as there is less demand from miners.
Disclaimer: This article is for information and entertainment purposes only and should never be construed as investment or trading advice. Bitcoin and other cryptocurrencies can be extremely volatile and you should always do your due diligence and research on the topic, utility, product or service and legal and regulatory requirements before deciding to invest. We do not take any responsibility for possible losses you may incur.