Analyst PlanB Says “Nothing Out of the Ordinary” as Bitcoin Price Drops 21% to 6-Month Low


It’s been two days and the bloodbath is continuing. Yesterday, we completely wiped out the gains made by the late October rally of 42% when we dropped to $7,400 level.

Today, we took an even bigger hit and went below $7,000 level to the six month low, to $6,785 on Bitstamp.

Bitcoin price drops to mid-May 2019 level but still up about 85% YTD, Source: TradingView

Historically, November has been the “best” month for Bitcoin price but after 2018 this time has also been the exception to that.

This week, Bitcoin has lost 17% of its value but popular analyst PlanB says there is no need to panic about this. As he points out, it is normal behavior for the leading cryptocurrency and “nothing out of the ordinary.” Not to forget that we are still up about 85% YTD.

The stock to flow model that puts Bitcoin’s value at $100k before Christmas 2021 is also working “just fine.”

However, this decline in price has surely turned the analysts and traders on Crypto Twitter (CT) bearish, so much so that the calls to $6,000 have made their return.

Analyst Bob Loukas sees Bitcoin crashing to $6,100 in the latter half of December as he says:

“Swan dive portion of the move in BTC on volume, you would think it bounces soon. But lower Cycle lows again, downtrend remains dominant and brings in much lower potential numbers into Dec.”

This puts Bitcoin’s support level at $7000, $6400, $6000, $5500, and $5000, according to economist and analyst Alex Kruger.

Also, the 200 week MA is currently at $4900. But since 2015, the price has never closed more than 3% below its 200WMA.

Meanwhile, Bitcoin mining difficulty that took a drop of over 7% on Nov. 8 from it's all-time high has seen a slight uptick of 2%. The fact it didn’t crash means miners are not capitulating and likely not the driver behind this crash.

“The increase is neither bullish nor bearish in the short term. There is no linear relationship between difficulty changes and 1 week returns (neither forward nor backward),” stated Kruger.

A potential reason for this decline in price could be China issuing a new risk warning today and cracking down on cryptocurrency trading anew.

Live Bitcoin (BTC) Price:

1 BTC/USD =$48,772.1245 change ~ 0.04%

Coin Market Cap

$921.45 Billion

24 Hour Volume

$21.23 Billion

24 Hour VWAP

$48.51 K

24 Hour Change

$17.28

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