Bitcoin Price Watch Update: Current Analysis
The current bitcoin price is hovering around the $7,500 BTC/USD exchange rate value.
With a high of $8,273 in the past week, Bitcoin dropped from $8,050 USD down to $7,450 in a matter of hours on October 23, 2019.
What’s interesting as Bitcoin value in USD sits at $7,500 range on October 24, 2019 – a crypto twitter contributor said this back on January 4, 2019 (when BTC/USD was $3,850):
BITCOIN BOTTOM 24 OCT 2019
— Looposhi (@22loops) January 4, 2019
BTC Analysts Predict Things Will Eventually Get Better, but How Soon?
Ever since Bitcoin saw its value drop, investors have been keen on understanding what’s to expect with the digital asset. Many leaders and analysts within the space have been sharing their perspective on what is currently going on and where we might be headed. It turns out that things might get a little ugly before it can better.
*BITCOIN DROPS TO LOWEST LEVEL SINCE JUNE
The avocados told me this would happen. pic.twitter.com/5rOyE3Ohak
— Tracy Alloway (@tracyalloway) October 24, 2019
Volatility Concern to Flourish with Time
Although the market was performing quite well, with its last unexpected swing sometime in July 2019, cryptocurrency investor and trader, Josh Rager noted that this unfortunate swing can be anticipated once more. The reason for such a claim stems from the fact that there exists a difference between BTC’s upper and lower band in the Trading Envelope Indicator.
If buyers weren't interested in $7800 Bitcoin, they're likely not interested in $7500 prices
It likely goes lower w/ confluence support at $7200 & below
Even after a natural bounce there, it comes down to where large/agressive buyers are interested
Take it level by level
— Josh Rager 📈 (@Josh_Rager) October 23, 2019
A similar narrowing was supposedly witnessed last month, which led to a drop of 12% in value. Equity Strategist, Matt Maley, argues that volatility is surely to arise merely because of the failing Libra project, in which many of its founding members have slowly aborted mission!
Could this mean that another drop in value awaits the giant crypto? As per Analyst The Cryptomist, if the bulls come together now, the damage did could potentially be reversed. However, if nothing is done, the giant might be sitting below the $7K threshold, only repeating its downward trends compared to that of 2018.
Congress, Brexit, and Many Other Reasons to Have Pushed BTC Prices Down?
Besides Facebook’s Libra not turning out as one might have wanted, it seems like there are a number of other reasons why BTC’s value dropped.
First comes Congress members. It turns out that they seem to only focus on the negative aspects of cryptocurrency. CEO of Arca, Jeff Dorman deems that the market’s poor performance is clearly linked to such negative “catalysts”.
Then comes long positions of cryptocurrency derivatives on BitMEX. As per Twitter user, @taiwandan, “long liquidation on BitMEX on that huge sell-off just now which is reportedly driven by a massive sale of 3600 BTC on Bitstamp.”
Next on the list is Brian Kelly’s viewpoint on the aforementioned sell-out. In particular macro hedge funds that were purchasing BTC as a hedge to Brexit are possibly selling them now amidst the price drop.
Obviously, with BTC’s value bouncing at lower and lower forces, miners are surely to make hasty decisions. Primitive Crypto’s Dovey Wan reasons that miners might be selling fast out of fear. Alex Kruger shared on Twitter that “when hodling decreases while price is going down,” things will only look even more negative.
Another argument comes from Tuur Demeester, who shared that in order for BTC to remain in the $8,000 ranges, at least until the next halving event, a demand of $2.88B is required, adding that “that’s $100M in net positive demand required per week.”
There’s Still Hope for Bullish Trends!
CEO of Galaxy, Mike Novogratz shared that a number of negative events are what caused the giant to drop in value. That said, he believes that things can go either way (continue bearish or become bullish) with “new energy”.
— Squawk Box (@SquawkCNBC) October 24, 2019
As per the crypto fanatic, if Fidelity urges clients to purchase BTC, this can in turn allow for bullish trends. In addition, he noted that the creation of an exchange-traded fund (ETF) could help to motivate investors as well.
While the cryptocurrency market has had its up and downs, its overall performance is quite impressive. To date, the number of transactions only continue to grow, with $10 billion in transfers being made on average per day. This adds up to $11 trillion transactions since BTC’s existence. Therefore, BTC is reasoned as not going anywhere for the time being.
#bitcoin transferred $11 trillion in wealth (2009-2019)
Still going strong at $10 billion each day pic.twitter.com/jAphbfYUzh
— PlanB (@100trillionUSD) October 24, 2019
The month of September was not a nice one for Wall Street, and they supposedly felt discomfort with Feds trying to keep rates on short-term borrowings low. As per Travis Kling, “The Fed’s actions with interest rates and repo markets have big bullish implications for #bitcoin.” It was also shared that the Feds are planning to add $120 billion in liquidity per day into repo markets, which reflects a 60 percent increase in “the overnight repo liquidity.”
Finally comes Congressman, Brad Sherman who noted that either investing in cryptocurrencies is going to leave investors with an unbearable loss or they may become big enough to overtake the US Dollar. Here’s what Sherman emphasized regarding the latter:
“It does achieve its objectives perhaps and displaces the US dollar or interferes with the US dollar being virtually the sole reserve currency in the world.”
> The #Fed to add *$120 billion* liquidity *per day* to repo markets.
> That is a massive 60% increase in the overnight repo liquidity availability (from $75 billion to $120 billion).
> #Bitcoin’s market cap is $135 billion. Think about it for a moment.
— Gabor Gurbacs (@gaborgurbacs) October 24, 2019
Overall, analysts appear to be convinced that things may worsen. That said, this doesn’t mean that they won’t pick up, and just as there are enough reasons to argue for a decrease in value, it seems like an equal amount exist for another possible bullish market. What are your thoughts? Are you hopeful that the market might regain some momentum before its halving event?
6 Crypto Community Tweets About Bitcoin’s Price and Crypto Market
Buy the fucking dip
— Majin (@majinsayan) October 23, 2019
The issue with miner activity and breakevens is that bitcoin miners, unlike gold miners, speculate with inventories. Bitcoin miners HODL. This results in gamma, which is negative when hodling decreases while price is going down, amplifying the downside.
— Alex Krüger (@krugermacro) October 23, 2019
Huuuge #BTC long liquidation on Bitmex on that huge sell-off just now which is reportedly driven by a massive sale of 3600 BTC on @Bitstamp. Some reports this could have been an algo gone wrong! Every bid from $7800 to $6200 wiped out in less than 15 minutes. pic.twitter.com/jKQj0sFhii
— taiwandan (@taiwandan) May 17, 2019
$BTC dominance road to 75-80% by EOY.
Hide yo kids hide yo wife hide yo alts. pic.twitter.com/GNIdVAkJr1
— Galaxy (@galaxyBTC) October 21, 2019
Who said bitcoin was volatile?
Bitcoin realized volatility drifting back towards historical lows – moved < 2% daily over the last 10 days pic.twitter.com/XFflXjjNC5
— skew (@skew_markets) October 21, 2019