Crypto Analyst: Bitcoin (BTC) Just As Likely To Hit $1,000 As It Is $10,000
Don't Hold Your Breath As Bitcoin [BTC] Prices Fall Through The $5000 Support: Analyst Says
Since the inception of the stock markets, it has been accepted that the tidal flux is how it works. The highs are followed by lows, and the lows never last. The past year has been proof of this. When Bitcoin touched the high of the $19,000 mark, many were ecstatic. Yesterday, however, was a stark reminder of how flippant the markets can be.
This past week has seen a horrendous market performance, at the back of a flash crash midweek, and now Bitcoin seems to have continued on the downward trend. In fact, it has fallen below the “support level” of $5000, nestled at $4595 at the time of writing, its lowest point in over 2 years. As expected, this change in fortunes has had a snowballing effect on the overall industry, with other altcoins falling at least 10% as well. Further, the uncertainty surrounding it is not good news.
After the sudden drop on the 14th, Bitcoin had been relatively stable, around $5,500, till Monday, when the prices started on the downward thrust again. This has seen an overall loss of about 22% in the last week alone. This latest drop has seen the prices tumble from the $6,400 region, where it had been relatively stable for a while. This has seen its market cap shrink to a little over $86 billion.
In a recent interview, the head of Asia Pacific trading at Oanda, Stephen Innes, had predicted the Bitcoin prices to fall below $5,000, stating,
“The digital token fell as much as 6.3% to $5,202, having plunged through a critical resistance level Wednesday after a period of relative tranquility. I remain incredibly bearish on BTC with the $1,000 level looking as likely as $10,000. But this is from a longstanding and unwavering view that regulators and the banking system will continue to push back against the rise of virtual markets, and will undoubtedly burst crypto’s balloon as the $5,000 cliff edge is approaching fast.”
It will be critical now for Bitcoin to climb out of the hole and back over the psychological level of $5,000 if it has any hopes of arresting this slide. As mentioned earlier, this capital drain has had a similar effect on the general crypto market. Many altcoins have dropped significantly in the past week. In the last day or so all major players are feeling the heat with Ethereum [ETH] down 11.7%, Litecoin [LTC]down 10.5%, and Monero [XMR] down 12.4%, the prognosis is not promising, either. The cumulative effect of this second round of destruction has caused the market capitalization to fall to about $165, another 2 year low.
Ripple Holding Down The Fort
However, when all others are losing their values, Ripple [XRP], has been rather stable in all this carnage, currently trading at slightly over $0.49, After the major drop last night, XRP too fell to $0.47, but then rallied back to its price and has stayed there. This rearguard action solidifies its stellar performance after the prices dived to $.42 last week. In fact, XRP seems to have recovered most of its lost value as it was floating around $0.52, last week.
This has certainly infused a much-needed confidence boost to the market. It also means that Ripple is now the second in terms of market capitalization, at nearly $20 billion, well above ETH. It will be interesting to see if this silver lining spreads across the industry or not. Many in the industry fear that the break of the $5000 mark might cause some to panic and significantly increases the risk of more damage. It will be interesting to see if the market is able to rally back and, indeed, if calmer heads prevail and this storm subsides.