Today marks a new yearly low for Bitcoin. At the time of writing Bitcoin’s value is $5,163, dropping from $5,560 in just 12 hours. Bitcoin has not seen prices this low since October of 2017, 13 months ago.
On June 11th 2018, Bitcoin’s value dropped to $5,750 after having held its value at around a $6,000 resistance level until last week when values began to plummet for Bitcoin as well as other major cryptocurrencies. At time of writing, BTC is currently trading at $5,280 which is 32% lower than last year at this time when BTC was trading above $7600.
Most of the top ten are currently exhibiting red double digit losses or losses above 5%. XRP is currently echibiting the lowest amount of loss (-3.73%). The stablecoin Tether, value is currently up 0.58% as it struggles to remain tied to the value of a US dollar. Ethereum’s ETH token dropped to its lowest value since July of 2017 down to $155 earlier today. Only nine tokens in the 100 are trading in the green at this time. Out of those 9, three are stablecoins that are pegged to fiat currencies.
With all of the numbers painted red from the sharp losses that have occurred, it has brought the total market capitalization down to a 13 month low of $172 billion. Just five days ago the market cap was $202 billion; a $30 billion loss.
Where is BTC Heading?
Last week when the market first began to drop off, some investors and analysts were hopeful that we would see Bitcoin return to its stable value to $6,000 relatively quickly. Other optimists were comparing the sudden instability of the market to the instability that occurred last year at this time that resulted in Bitcoin nearly reaching the $20,000 mark. Some had hopes that we would see Bitcoin’s value rise up dramatically once again this year just in time for the holidays.
Now most hopes for a holiday miracle are dead as experts are now predicting that Bitcoin will only continues to snowball downward in value until at least the second quarter of 2019.
Current conditions in the market indicate that that a drop below $5,000 is extremely likely. As Bitcoin’s trade volume continues to increase, the pressure to sell off follows suit not only for Bitcoin but for all other major cryptocurrencies.
As of today, Bitcoin’s volume remains around $4.8 billion indicating that the bulls are showing little resistance and the sell pressure is still there.
Over the past week Bitcoin has fallen from $6,400 to $5,170 which brings its value dangerously close to the $5,000 mark. If Bitcoin’s value dips below the $5,000 mark, its predicted that its value will continues to tumble down into the $4,000’s. Experts state that the current market shows no indicators for a bottom on how far Bitcoin’s value can fall.
Why all the way into Q2 of 2019?
Bitcoin analyst, researcher and founder of woobull.com, Willy Woo, stated that indicators on the Bitcoin blockchain show only negative indicators surrounding the future of Bitcoins value.
“This last reading of our blockchain and macro market indicators is still in play. What has changed is that NVTS has now broken its support, typically a sell signal. All our blockchain indicators remain bearish. NVT, NVTS, MVRV, BNM, NVM. They are experimental but have served to make very correct calls to date, even when traditional on-exchange indicators were reading to the contrary.”
According to Woo, it’s inevitable that Bitcoin’s future is a negative one if its value drops below $5,000.
What do you think about the future of Bitcoin? Will Bitcoin’s value continue to fall, or will it rise up to the high values of last year?