The top 10 coins are all reporting in the green this morning with EOS exhibiting the largest gain of 10% over 24 hours. Bitcoin has demonstrated high volatility over the past week as its price has continually pinballed between $3,200 and $3,600. Bitcoin is struggling to break through the $3,700 price barrier but has managed to remain above the $3,200 mark. This high volatility coupled with low volume and no price spike, indicates low sell pressure and declining value.
Even though Bitcoin’s value may be declining, it’s not going to zero. Panic has surrounded the idea of Bitcoin going to zero for many weeks now, but the likelihood of that happening is nearly zero itself. Bitcoin’s future price movements cannot be accurately predicted, but analysts have multiple opinions on what can happen.
If Bitcoin fails to gain further upwards momentum and remains in its pinball state for the coming weeks, it’s likely its price will eventually fall downwards towards $2,500. If the bulls enter the market and drive forward momentum we could see a corrective rally back up in the $4,000’s.
Josh Olszewicz wrote that,
“This is many weeks away from completing and will likely be wrong. But, if the pattern completes, bull entry at $4,300 other option is bearish 3rd drive down to $2,500 and then retrace to $3,600.”
Why you shouldn’t be afraid of zero
It’s always important to remember that the crypto market is still in its infancy. It’s common for assets to lose or gain half their value in a weeks time, which is almost unheard of in the stock market. Fear, uncertainty, and cynicism is what’s currently dominating the crypto market. There will come a time when speculation towards crypto subsides and the market climate shifts away from uncertainty and towards acceptance.
Regarding Bitcoin’s current price, historically Bitcoin drops 85% in value before it finds it’s new bottom over a couple months. At this time we’re in the pinball stage where the market is attempting to find Bitcoin’s new bottom, while the fate of all other cryptos lay in tow. But there remains no reason to fear zero.