Bitcoin continued its downward trend today, seeing a price low of just over $4,800 at the time of this writing (via Blockmodo real-time data). Meanwhile, the public speculates on a price bottom, accompanied by a broad range of emotions.
Bitcoin’s Price Action
Looking at the weekly chart for Bitcoin, there are several levels of interest. The $4660, $3000, and $1860 areas show levels of support based on the Bitmex USD chart. Price seems to have found a bit of support at press time, around a bottom of $4660.
Image Credit: Tradingview.com
On the daily chart, Bitcoin is well below the 128-day moving average (yellow line). The $5700 – $6100 range (roughly) was the support for a significant amount time, but now has turned into resistance as yesterday saw price retesting that zone, with failure to stay in that range.
Image Courtesy: Tradingview.com
When Bottom?
From a trading and investing perspective, crypto chartist and influencer Tone Vays has been accurate in his evaluations this year. He even won a bet with poker pro and crypto influencer Doug Polk when Bitcoin’s price reached $6k (already seen).
In a YouTube video today, Vays expressed his evaluation based on the charts. Accordingly, lows of $2500 (and possibly $1300) may not be out of the cards going forward to find a market bottom in certain scenarios. However, the $4000-$5000 range is also referenced as a possible short-term bottom.
How Does Mining Factor Into the Equation
Bitcoin mining also plays a part in Bitcoin’s price. Bitcoin miners may operate on the basis of Bitcoin’s price covering their cost of mining. Simply put, if Bitcoin’s price drops to a range where miners cannot sell at a price to recoup their mining and electricity costs, then they are operating at a deficit.
Since mining costs vary by region and country, it is difficult to fully grasp the impact of such price action on miners.
In a private conversation, Crypto Insider’s Vlad Costea has made an interesting comment on the subject, stating that a lot of miners would shut down their operations if Bitcoin’s price dropped too significantly. Costea also mentions compromised/lowered network security in such a scenario, yet the reduced mining difficulty might be enough of an incentive to keep it all going.
Twitter Drama
Speculation fills the Twitter streets, with folks wondering when the market will see a reversal.
5.8k✔
5.2k✔
4.8k ✔
4.6k pending
4.2k
3.9k
3.6k pic.twitter.com/ylqfYmYaKy— CRYPTO₿IRB (@crypto_birb) November 19, 2018
Meanwhile, notable figures like Peter Brandt show evidence of the bubble that once was Bitcoin.
Air left in the bubble. pic.twitter.com/hwtcWiVzY5
— Peter Brandt (@PeterLBrandt) November 19, 2018
Still others on Twitter just continue to make comical statements, knowing the market has a mind of its own, and that no amount of willpower can control help everything in life.
Many of these comments and tweets are made by veterans of the crypto space who are experienced with such market moves.
I love the feeling of lying in bed and wondering what kind of complete and utter mess you’re going to wake up to in $crypto tomorrow.
This is the real experience that I’m used to. If you’re seeing it for the first time, welcome. Enjoy the ride.
— Emptybeerbottle (@Fullbeerbottle) November 19, 2018
Time to put out the call for my surviving crypto traders:
REEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
— Socal (Definitely check out CoinHQ.tv ) (@Socal_crypto) November 19, 2018
And of course, CNBC chimed in on the action.
It's a horror show for #bitcoin. Take a look at these moves… if you dare. $BTC pic.twitter.com/9kkd9ytVDd
— CNBC's Fast Money (@CNBCFastMoney) November 19, 2018
No one knows for certain what the future holds for Bitcoin or cryptocurrency markets as a whole. However, after many weeks of consolidation and lack of volatility, the market is now seeing a big play to the downside.
*This article includes opinions from the author and is not in any way financial advice. Writing about price levels is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever.
*CryptoInsider is sponsored by Blockmodo. As part of our arrangement, we may occasionally link to them and quote them when appropriate. This is done at the discretion of CI staff and CI sponsors have no say in any editorial decisions made by CI.
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