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According to David Puell, a market and Bitcoin analyst, the dominant cryptocurrency could reach its lowest level by the end of December or the first quarter of 2019.
The USD 4,300 region, in which Bitcoin came in after a correction of around USD 6,600 by 35%, has been established as a comfortable region for the asset. With resistance accumulating above the $ 4,300 mark, the analyst explained that a decline in the current price could result in a burnout in the lower range.
Puell m said:
"As volatility has increased dramatically, it is relevant to have a granular view of the current structure of volume nodes. Resistances have accumulated, so any removal should be closely monitored for signs of burnout. The area of $ 4,300 is the center of mass.
Highlight of December or February 2019
Given the sharp decline in the price of bitcoin in recent months and significant resistance levels of between $ 4,000 and $ 6,000, a further decline below $ 4,000 could cause the market to lose most of its momentum. recently won.
According to Mr. Puell, a potential lower target is $ 2,800, which would represent a drop of 85% from its record price of $ 19,500.
However, Puell pointed out that bitcoin can only reach a floor if the sale reaches its peak, if its debt decreases, and if the market begins to show exhaustion.
Currently, the market is extremely volatile and evolves from 10 to 20% per day. In the past 24 hours, Bitcoin has increased by 12%, while Stellar, another major cryptocurrency, has increased by almost 15%.
"The weekly Gaussian bands (1) show a crucial confluence with the general zone of high value nodes ($ 2,800) (2). This gives a more detailed view of the nuances that accompany this level in terms of potential fluctuation and behavior of weekly closing prices. This general area is also supported by the 200-week MA and many buying positions (volume per period) in September 2017, "Puell said, adding that the bear market could last until 2019.
He explained:
"Given the strength of the downward trend and current information, a culmination could be reached in December and February."
Q1 2019
Willy Woo, the founder of Woobull.com, has proposed a similar timetable for the end of the bear market of Bitcoin. Earlier this month, Woo said the market is expected to bottom by mid-2019, based on fundamental indicators such as the volume of transactions and the activity of users of major cryptocurrencies.
Analysts generally agree that, in order to recover from the massive sell-off in November, which resulted in a loss of nearly $ 80 billion in the cryptocurrency market, a consolidation period of several months will be required and that leading digital assets will have to demonstrate a relatively high level. stability in a lower price range.
The small-cap tokens have shown a promising upward price movement over the last 24 hours, with some including ICON increasing by more than 30%. But most assets are still down sharply since October.
Featured image of Shutterstock. TradingView Charts.
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