The last days haven’t been good for the Bitcoin community and the price of the cryptocurrency. Since the beginning of August it lost over $1,000 dollars and other virtual currencies reached new year lows. According to Renaissance Macro Research, the situation could be even worse.
Jeff deGraaf, head of technical research at Renaissance Macro Research said that he would bet against bitcoin if the famous virtual currency breaks through the current support level.
Mr. deGraaf commented on the matter:
“Parabolic moves are notoriously dangerous for short-sellers… Usually a top develops that often appears as a descending triangle over months, with reduced volatility and little [fanfare]. Once the top is complete on the support violation, the security in question can often be considered permanently impaired or even ‘game over’. We are of course referencing Bitcoin exhibit ‘A’ in today’s market.”
It is important to mark that deGraaf is one of the most important and respected technicians on Wall Street, and has been providing very accurate information in the last two decades. Indeed, he has been ranked the number 1 technical analyst by the Institutional Investor magazine for over 10 years in his career.
On August 7, 2018, the U.S. Securities and Exchange Commission delayed a decision on whether to approve a proposed bitcoin exchange traded fund (ETF). The ETF is known as VanEck SolidX Bitcoin Trust.
Since the beginning of the year, the famous virtual currency lost over 50% of its price. Now is being traded around $6,500 dollars and has a market capitalization of $112 billion dollars. Other virtual currencies have also suffered from this situation, but now most of them are recovering from the strong drop they suffered the last days.
In the long term, experts in the field believe that the ETF will be approved and that Bitcoin is going to reach new all time highs, as it happened several times in the past. However, we are experiencing one of the hardest and longest dips in Bitcoin’s history.