Bitcoin Expected To Drop Below $2,100 Before Making A Trend Reversal: Analyst
Bitcoin is expected to hit the bottom sometime in 2019. While some experts are expecting it to be at $3,000, others are predicting more pain for the leading cryptocurrency. Though there is no saying which analysis will come out to be true, this crypto analyst is expecting a lot more pain before the final capitulation hits and things start turning around for good.
Technical analyst Murad Mahmudov who is a Princeton graduate and has predicted correctly on several past occasion is expecting Bitcoin to hit bottom at about $1,700, half of Bitcoin’s current price which is already over 80 percent down from it’s all time high at $20,000 in December 2017.
Murad presents a detailed analysis where he questions, “What if the history does indeed rhyme?” On the basis of past observations, he notes that the current market movements are similar to the 2014-2015’s bear market and its final dump with the only difference being the current 10x price increase.
The repeat of the 14-15 market could be a sign that further losses can be expected. This also means we could be at the final capitulation stage. In this bleak scenario, Bitcoin will be dumped to the low of $1,700 by mid of 2nd quarter this year. Moving forward, Bitcoin will stay around this level until the quarter 3rd before showing any signs of recovery.
Earlier this month, Murad went on TV with his prediction of Bitcoin hitting bottom at around $1,700. Back in November 2018, he correctly predicted the lows of $3k as he said, “low 3000s not outside the realm of possibility if the Descending Triangle pattern plays out fully.” In December, Bitcoin hit its lowest at $3,100.
Just last week, Murad analysed that “Titanium level thickness cluster of resistance here. The longer we stay here the more I'd be inclined to look for shorts.” At this time as well, Bitcoin that has been trading at $4k went down to $3,600 level.
At the time of writing, Bitcoin has been trading with about 3 percent gains in the past 24 gains at $3,683, as per the data provided by Coinmarketcap. Meanwhile, the leading cryptocurrency is managing the daily trading volume of $5.6 billion.
Murad concluded his analysis with April to be the month Bitcoin can drop below $2k,
“If the above dynamics are correct and history does indeed rhyme – which is a big if — We can expect a 1700-2200 bottom in the Spring (most likely April).”
Recently, Fred Wilson echoed similar sentiments in his paper that states 2019 will see Bitcoin finding a bottom. Delphi Digits, an independent research group in its paper also noted that bottom could be expected in quarter 1 of this year.