Fundstrat Global Advisors analyst Rob Sluymerin a note send to his clients yesterday’s, said, that Bitcoin breakdown pushed crypto markets into a “deeply sold” area where long-term technical indicators are no longer as beneficial. Sluymer commented on the situation: “The break-up this week has caused serious technical damage that will probably take weeks, if not months, to create a sufficiently stable price structure”. Fundstrat analysts then commented that the end-of-year trend is beefed up, but not broken yet.
Yesterday, the largest cryptocurrency fell below the support of $ 5,600 for the first time since October 2017, breaking the recent support of around $ 6,000 and ending up with volatility records for several months. Another financial analyst told financial media today that the loss of $ 6,000 in support looks like a dangerous sign for industry players, especially those with business models depending on the pool of customers.
The recent crisis in the cryptographic market also caused a further decline in the shares of cryptographic companies, including the Japanese SBI Holdings and Monex Group. Both Monex Group, owner of Coincheck Cryptocurrency Exchange and SBI Holdings experienced a drop of over 2% to close on two-week lows in Tokyo.
Earlier, during the holiday season, the research boss Fundstrat – Tom Lee – repeated his prediction that Bitcoin will cost between $ 22,000 and $ 25,000 by the end of the year. Recently, Lee expressed satisfaction with Bitcoin’s recent stability, claiming that he expected his volatility to be much higher.
In early November, the CEO of Galaxy Digital, Michael Novogratz, said that Bitcoin needs to reach $ 6,800 to reach around 8,800 – $ 9,000 by the end of the year. He also predicts that the largest coin could hit $ 20,000 or more in 2019.
Despite all of this negative comments and predictions, let’s just take a look at the Bitcoin technical picture at the H4 time frame. The market is currently consolidating around the level of $5,500 after making another lower low at the level of $5,164. The market conditions are extremely oversold, so some kind of a corrective bounce to the upside is being expected now. The nearest technical resistance is seen at the level of $5,728 and this is the short-term target for bulls.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Bitcoin analysis for 16/11/2018