'Final Desperation Wave' Might Drop Bitcoin Price to 'Mid-to-High $2,000s', Analyst Claims

Omar Faridi

Tim Kelly, the founder and CEO at BitOoda, a cryptoasset advisory firm, has said that “the final wave of desperation [could] take us” to a bitcoin (BTC) price in “the mid-to-high $2,000s.”

Bitcoin is currently trading at $3,604.85 according to CryptoCompare data - as the BTC price surged by almost 10% earlier this week (from around $3,400). According to Kelly’s analysis (shared with MarketWatch):

[BitOoda] expects the final wave of desperation to take us [to a BTC price below $3,000] before the market starts the recovery. We could be wrong, of course, and until the 2018 low is taken out (it has not been revisited yet), there is a possibility that the selloff is done.

Kelly further noted that he is expecting a downside target for bitcoin between $2,400 to $2,800, however a short-term rally might be able to take the BTC price back up to the $4,030-$4,300 price range. It’s even possible that bitcoin might find a “$5,600-$6,000 support level”, Kelly argued.

Predicting BTC Price Support At $3,530, Resistance At $3,750

Meanwhile, Twitter user DonAlt (@CryptoDonAlt), a widely-followed crypto analyst, noted via Twitter that “as expected, [bitcoin] is struggling with resistance.” Estimating a support level of around $3,530 while predicting resistance at $3,750, DonAlt mentioned that he’d be “going wick hunting somewhere between the two dotted green lines (pictured below).”

On February 4th, 2019, Murad Mahmudov, a prominent crypto analyst and widely followed market commentator on social media, pointed out that the number of bitcoin-related tweets had dropped to “the same level as 2014.”

Mahmudov added that it appears as if “nothing has changed” as the number of tweets about bitcoin are even lower than “at any point in 2016.” He also mentioned that “all the people, particularly in the Western world, obsessed with Bitcoin” including Pierre Rochard (the founder of Bitcoin Advisory), have already been in the crypto space for many years.

"Greed, Speculation" Are Biggest Drivers Of BTC Price

According to Mahmudov’s observations, “bull markets bring fewer new obsessed” crypto industry participants and “there are [even] fewer of them overall than I thought.” There are also significantly “fewer people” who may be interested in “decentralized sovereign”, deflationary currencies “for its own sake than you'd like to think”, Mahmudov argued. He remarked:

Cryptocurrency's biggest use case is speculation. That is a fact. For better or worse, speculation and human greed are your biggest hope.

While some analysts like Mahmudov maintain a bearish outlook, well-known Chinese cryptocurrency billionaire, Zhao Dong recently said it was a great time to buy bitcoin. He believes:

The people who [are currently] paying attention to bitcoin are obviously [a lot fewer] than the [number of interested investors during the] bull market, and ... naturally … the prices [are] low right now.

Towards the end of last year, Dong had predicted (on China’s microblogging social media platform Weibo) a bitcoin price of $50,000 by 2022.

Hacked Exchange Cryptopia Enables Trading in 40 Different Currency Pairs

New Zealand-based digital asset exchange, Cryptopia has reportedly resumed trading on its exchange as it is now allowing 40 different trading pairs. This, after Cryptopia recently experienced from several different security breaches.

Support For Bitcoin, Litecoin, Dogecoin Pairs Added

Cryptopia’s management announced (via Twitter on March 18th) that it is planning to expand its list of coins which will again be supported on its trading platform. As noted on Cryptopia’s official support website, the exchange has enabled several different trading pairs (as of March 19th, 2019) with major cryptocurrencies. These include bitcoin (BTC), litecoin (LTC), and dogecoin (DOGE).

In response to Cryptopia’s announcement, Twitter user @dgb-chilling, a supporter of DigiByte (DGB), a cryptocurrency that uses five different mining algorithms, said that he had emailed the exchange’s support team to inform them regarding the coin’s latest update (version 6.17.2). He added that “an upgrade was recommended but not mandatory.”

Meanwhile, Chuck Norris (@CryptoTweet6) remarked: 

Now this is good news! Let’s hope the rest of the coins will be released for trading swiftly.

Other users also considered it “good news” that the compromised cryptoasset exchange was gradually resuming its operations. However, one social media user asked when Cryptopia would start enabling deposits while another inquired about why his ARK coins were still not recoverable from the trading platform. He claimed that he had deposited 1,000 ARK, currently valued at around $628, (a popular proof-of-stake based coin) on Cryptopia. The user also complained that his coins were missing “missing because [the exchange] did not update the ARK wallet."

Tens Of Millions Of Dollars Stolen In Hack

On February 27th, 2019, Cryptopia’s management announced that it was “assessing the impact incurred as a result of the hack” which led to the theft of tens of millions of dollars in cryptocurrency. Last month, Cryptopia’s support team had also estimated that the total loss incurred due to the security breaches was of around 10% of its total holdings (in the worst-case scenario).

Notably, the exchange’s official Twitter account had been silent for several weeks (since Feburary 14th). However, it released several announcements, starting in late February, in which it revealed that its staff members were working on securing each customer’s account individually. Cryptopia’s management also noted that it was taking the appropriate measures to ensure that its trading platform is secure when it is officially back online.