Even with the volatility of Bitcoin continuing to decrease, the flagship crypto-asset has been trading sideways around the $3,900 mark for more than a few weeks now. While this relative stability might be welcomed by some, there are those who believe that the digital asset will face negative price action sometime in the near future.
In this regard, a couple of analysts believe that if Bitcoin is not able to break past its key $4k resistance threshold, it might drop to around the mid-$2,000 region soon.
A Closer Look at the Matter
At press time, Bitcoin is trading for a price point of around $3,844. However, what has been alarming for a fair few crypto experts is the fact that the currency has been caught in this price region for more than 15 days.
Additionally, SFOX’s Danny Kim, recently spoke with Forbes about the premier alt-currency’s declining volatility rates. Kim stated that prior to mid-November 2018, BTC had not witnessed such low volatility since May 2017.
He then went on to add:
“Over the past months, we’ve generally observed tight range-bound trading with very short spikes in both volatility and price to both the upside and downside… While crypto-asset prices remain, as a whole, highly volatile and difficult to predict, the BTC/USD pair’s volatility is currently at its lowest point since mid-November 2018… Before that time, its volatility hadn’t been this low since mid-May 2017,”
At this point in the article, it is also worth adding that after an extended period of sideways trading during November last year, Bitcoin plummeted from $6,400 to an annual low of $3,200.
Also, in regards to BTC’s current support levels, Kim as well as many other experts are of the opinion that $3,800 is not a reliable support zone. They also believe that the currency’s key support levels currently lie around $3,500 and $3,000 respectively.
Bitcoin Plunge Seems Inevitable
As mentioned earlier, Bitcoin’s ongoing stability is quite deceptive since many crypto analysts believe that if the altcoin is not able to break past the $4k mark soon, it will most likely dop to around the upper-$2,000 region.
In regards to the subject, a crypto analyst by the name of SalsaTekila recently stated that BTC was bound to slide in the near future. However, in his opinion the “the mid-to-upper $2,000 range” is a great place for investors to once again start buying BTC.
1) 4400$-4500$ area is where I intend to hedge if we go up.
2) If break down, keep an eye for absorption below 3330$ (HTF liquidity pool).
3) Green box 2500-2850$ area is where I start buying spot if no absorption and we break-down to new lows. pic.twitter.com/qDt4wZ8qco
— SalsaTekila (JUL) (@SalsaTekila) March 12, 2019
In closing out this piece, it is worth remembering that as and when the crypto market begins to witness an increasing level of volatility once again, traders and analysts will be able to gain better insights as to which direction the industry seems to be heading in.