Bitcoin’s Price Drops to $4,300 as Analyst Claims We're Approaching a Buy Zone

Bitcoin’s price has been dropping in the last few weeks, so much so that it fell below the $5,000 mark for the first time since October of 2017, and that miners are currently struggling to remain profitable.

Just as some believed a relief rally was in, bitcoin’s price started falling once again, and is currently down by about 3.7% in the last 24-hour period. One bitcoin is currently going for about $4,300, and the cryptocurrency’s market cap is now down to $75 billion.

Bitcoin's price performance in the last 2 weeks

The cryptocurrency’s sell-off has had various effects on its ecosystem. A recent report has revealed the value of bitcoin payments plummeted about 80% this year, although data on these is patchy as some trades with other currencies are often included. Nevertheless, the “Holiday 2018” consumer report revealed teenagers would rather receive cryptocurrency, or Fortnite “V-Bucks” over cash or gift cards.

According to MarketWatch demand for cryptocurrencies may not be down at all, as Jani Ziedins of CrackedMarket revealed a short-term bottom may be close. He was quoted as saying:

Look for the selling to continue over the next few days, but a bounce off of $3.5k-ish that returns to $5k is likely. While that doesn’t sound like a lot given the latest tumble, a bounce from $3.5k to $5k is a nearly 50% payout for just a few days of work.

Ziedins noted that making a profit off of the short-term bounce is “not for the faint of heart,” although he believes there will be “nice rewards for those willing to jump aboard the inevitable bounce.”

Other analysts have suggested that bitcoin may find support at the $3,500 and $3,000 levels.  eToro senior analyst Mati Greenspan tweeted out that he expects the cryptocurrency to indeed find support at these levels, although a bounce before reaching them could be a “very bullish sign.”

Altcoin Sell-Off Continues

The crypto market’s decline didn’t just impact BTC. According to available data most cryptocurrencies are currently down, with Ethereum Classic (ETC), Bitcoin Cash, and Dash dropping the most, as they’re down 8.8%, 7.1%, and 9.1% respectively.

Ethereum’s ether and XRP are both down, by 6.7% and 6.1% respectively. The cryptocurrencies that have been able to, to a certain extent, resist the sell-off are EOS, NEO, LTC, and BTC. These are down by between 3% and 4%.

The decline has notably also failed to affect the number of transactions being processed by blockchain-based cryptocurrencies. As CryptoGlobe reported, the total value transferred by cryptocurrencies is comparable to that of MasterCard, as BTC transactions average $8 billion a day, while MasterCard’s network processes roughly $11 billion a day.

After Monster Rally, Dogecoin (DOGE) Pushing Multi-Year Resistance

Colin Muller

Dogecoin (DOGE), beloved of crypto traders old and new, has repeated its classic move and shot up as much as 140% in the past two days. With this move, it is pushing on a multi-year resistance zone. If that were to break, we would see something truly interesting.

We can see this on the weekly DOGE/Bitcoin chart, from the (once-mighty) Poloniex exchange. This trending zone has been respected since June 2017, which many consider the first great “alt season”.

Watch this closelyDOGE chart by TradingView

The two key levels here are ₿0.00000038 (38 sats) and 79 sats, which make up the block of the resistance area on the weekly chart. This poses a very clear criterion for us to be aware of: the weekly has not closed within this zone in three-plus years; and come Monday, if it is above 38-ish sats, DOGE will be looking interesting still.

Moving to the daily DOGE/USDT chart, we see a similar, if less slanted situation. If the rocket 140% move is to make any inroads into a  new price structure, it will have to hold on a retest at about $0.0033.

A new market structure?DOGE chart by TradingView

That doesn’t look like it should be too difficult, and we could instead see a hold somewhere much more impressive like $0.0045 and above.

At any rate, we need to watch that DOGE/Bitcoin weekly chart. Breaking resistance seems too hard to believe; but we could well see DOGE/USDT continue up – and this would imply a leg up for Bitcoin. Thus, DOGE/Bitcoin may tell us just as much about the broader crypto market as it does about Dogecoin itself.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

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