13 Mar 2019 #Bitcoin
In the last several days, Bitcoin has seen a rally that included most of the crypto market. However, the surge has passed, and the price is not back to the 38.2% Fib retracement level. While this was also expected from the coin known for large volatility, it is anticipated that an even bigger drop is about to follow.
However, before this drop arrives, analysts seem to believe that BTC will spike towards $4,200, potentially even breaching this level. After that, the predicted major drop is expected to follow, and likely knock Bitcoin's price back down towards $3,000 in the following weeks. The drop is expected not to occur without the surge, meaning that it might not even happen if something disrupts the market's natural flow.
Further short-term rallies still remain a possibility in the near future, while the end of the week will show what path will Bitcoin take from now on. Analysts predict that the correction following the large surge will arrive almost immediately afterward, possibly even at the beginning of the following week.
Bitcoin is currently in a serious lack of cash flow, one which would allow it to start growing permanently once more. It is believed that most investors will not turn bullish unless BTC reaches a certain price, and that price is believed to be $6,000. Turning the investors bearish seems to be a much easier thing to do, as all it takes is for BTC to break several supports and spiral back down closer to $3,000.
Meanwhile, there are also many who believe that Bitcoin may have bottomed. However, this is unlikely, and with each passing day, it becomes more and more apparent that the further drop is a much greater possibility than another growth. Even if the predicted surge does arrive, it will be followed by a nosedive.
Even so, analysts also do not believe that it is time for shorting either, as the predicted drop will be the result of BTC running into a strong resistance. If another rally follows the drop, it is more than possible that BTC might once again reach, or even breach the $4,000 mark. Meanwhile, there are theoretical strategies that may result in BTC being brought up to $6,000 mark, although it is unlikely that such a large growth can be predicted or manipulated within any short time period.
For now, it appears that a highly volatile period may be in store for Bitcoin in the near future, one which will start with a large surge that will allow BTC to break a resistance that was blocking its way since mid-February. However, if the surge does arrive, it will almost certainly be immediately followed by a massive drop, one which will likely hit the entire market, considering how closely other coins follow Bitcoin's lead.
But, as this drop will only be a correction caused by the rejection, BTC is expected to once again come back up and potentially settle near or above the $4,000 mark.
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