Bitcoin Takes Another Drop to $6,675 But Trouble Doesn’t Start Until This Level
- A battle between bears and bulls – $5,500 looks likely
- But nothing to be concerned about until we reach $4,923.20
Yesterday, the Bitcoin price dropped below $7,000. Last time we were below this level was on Nov. 27. Now, today, in yet another downward move, Bitcoin price went to $6,674 on Bitstamp. On Bybit, the price dropped to $6,666.
At the time of writing, BTC/USD has been trading at $6,742, as per Coincodex while managing the daily trading volume of $384 million.
Following Bitcoin, altcoins went into a free fall, top cryptos lost 8 to 11% of their value.
As we reported, the biggest Ponzi scheme ever PlusToken has $150,000,000 worth of BTC yet to be cashed out that puts BTC in danger of breaking down.
Why are you trying to catch knives?
Pages and pages of liquidations this morning.
Let the bulls show ANY sign of strength before trying to catch this.
If a Ponzi scheme is still market selling their BTC, don’t fight it. pic.twitter.com/irkvn8Llzp
— Jacob Canfield (@JacobCanfield) December 17, 2019
Meanwhile, trader Hsaka notes that Bitcoin Bitfinex spoofer has been back in the market, stating,
“This is the longest I've seen these guys active for since their initial appearance. BTC tends to move after they eventually pull.”
Call for $5,000
Crypto Twitter has turned bearish with BTC price predictions going lower and lower.
Trader Josh Rager sees Bitcoin testing the $6,500 area again before registering a push-up. The world’s leading cryptocurrency he says is currently in a battle between bears and bulls. However, he isn’t as bearish as most people.
My full Bitcoin analysis is in The Wolf Den today. I am not feeling particularly bullish at the moment – that could change quickly if this bullish divergence confirms on the daily line chart today. This is the main thing I am watching for the moment. pic.twitter.com/AphIw9DxxG
— The Wolf Of All Streets (@scottmelker) December 17, 2019
According to trader Jacob Canfield, BTC could go as low as $5,500 because it is 78.6% from the swing low to swing high. However, a few bounces in between aren’t out of the picture either.
6666 was the next gap. Watch corn cucksolidate and stay around here – not bounce
— Majin (@majinsayan) December 17, 2019
However, Michael Goldstein of Noded Bitcoin Podcast says the current drop in price is nothing to be concerned about.
Goldstein drew a graph of the difference between the stock-to-flow model price and the actual price. According to this graph, pretty much anything between -0.5 and 0.5 isn’t of much consideration. The current model price is $8,117 and the S2F multiple at -0.152.
For the multiple to go as low as -0.5, the price needs to crash to $4,923.20.
“Exactly how I see these small fluctuations: all well within normal bands,” responded prominent analyst PlanB.
BTC could fall another 11-12% here, before it finds any kind of support near 6000. Ultimately, I think we're heading to at least the 5000 range, to test the 200 week MA. If that fails, it will be the first time in BTC's history, and I think BTC would fall to 3000 then 1250.
— MAGIC (@MagicPoopCannon) December 16, 2019
Open interest for Bakkt’s Bitcoin futures has reached a new all-time high. Also, the searches for “Bitcoin halving” on Google have already started surging. Entrepreneur Alistair Milne says the increases in searches have started “a lot earlier this cycle … should peak a lot higher too.”