'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.

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.

Featured Image Credit: Photo via Pixabay.com