Memories of the last significant price dump are still fresh in our heads. Last November, the Bitcoin Cash hard fork war that led to the creation of Bitcoin SV and Bitcoin ABC, caused the entire cryptocurrency market dearly. The price of Bitcoin fell from the $6000 levels to the $3000 levels and has been unable to recover fully above $4000 since then. Most Bitcoin news outlets, including smartereum.com, have reported that the price of Bitcoin is gearing up for a bull run ahead of the Bitcoin halving. Unfortunately, today’s Bitcoin news is different.
Bitcoin News Today: Bitcoin (BTC) May Lose Another 50% Even With The Upcoming Bitcoin Halving
Historically, the price of BTC always surges higher ahead of Bitcoin halving. With the next Bitcoin halving scheduled for 2020, analysts started predicting that the price of BTC will spike. This time, however, analysts have suggested that Bitcoin’s inability to rise above the resistance at $4,000 is a bad thing that may lead to lower lows soon. If Bitcoin price fails to move above this $4,000 as soon as possible, it may move lower to the $3,300 and $3,500 range. This will pave way for more lows that may cost Bitcoin up to 50% of its current gains according to a trader on Twitter. In the trader’s words:
“$4,400-$4,500 area is where I intend to hedge if we go up. If break down, keep an eye for absorption below $3,330 (HTF liquidity pool). The $2,500-$2,850 area is where I start buying spot if no absorption and we break-down to new lows.”
Bitcoin News Today: Trade Cautiously At This Point
It’s true that the market valuation of all cryptocurrencies has been bullish since February and has gained up to $14 billion. However, this doesn’t mean the winter is over thanks to Bitcoin’s inability to cross the key resistance. Mike McGlone, an analyst at Bloomberg, said that the buying demand for Bitcoin long-term has declined and this may affect the accumulation phase. In his words:
Bitcoin (BTC) Price Today – BTC / USD
“The entire industry is ripe to resume a path to lower prices. Conditions are akin to November, just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting.”
At this point in the cryptocurrency winter, it is important that Bitcoin refrains from losing up to 50% of its value as it did in November during the Bitcoin Cash hard fork war. A 50% dump after four months of relative stability might be the nail on the head that will discourage even the most optimistic traders. It will ignite a market-wide sell-off that may bring the price as low as $1000 according to CCN.
At the time of writing, Bitcoin was trading at $3,913.24. This shows that it is up by 0.06% against the USD. The trading volume over a 24 hour period is $9,271,507,886 and the market capitalization is $68,823,591,304. Now, more than ever, it is crucial that Bitcoin moves above the $4,000 resistance level short-term to avoid a 50% drop in price.
From today’s Bitcoin news, what do you think? Will Bitcoin lose up to 50% of its current value, or will the flagship cryptocurrency finally cross the $4,000 resistance. Share your thoughts in the comment sectio.