Crypto investors and enthusiasts can only watch helplessly as the cryptocurrencies continue to fall in price. Led by bitcoin, the prices across all cryptos has continued its path downwards. In other words, you could say this is a slow death!
The reason I write this is not to make fun of anyone but what I had read on the investing.com website. A well-known trader Anna Coulling had written a blog piece back on Jan 24 titled – Bitcoin: Look Out Below. In the piece, she posited that the daily chart for bitcoin continued to show technical, analytical, and structural cracks, which are likely to see the market fall. In addition, she stated that the price would fall heavily if the $10,000 support region is breached. As we all know, that support region has been breached.
Perhaps even more interesting is what she said next –
“Once the price moves through the psychological five figures and down to four, the next question is where and at what level buyers will return to halt the fall. From a technical perspective the first pause point is likely around the $7,300 region. But once this is breached, $4700 then comes into view, and below this $3000.”
As of this writing, the price of bitcoin is $7113. This means that the $7300 region has been breached. Does this mean that there is more pain to come? One cannot rule that out as a look at the charts continues to show that although the bulls have fought back at several price points, bears are just too strong. Only the good Lord knows what the reaction would be if bitcoin breached $3000! Remember, where bitcoin leads, the others follow. Fear has simply taken root! But for how long you ask? Your guess is as good as mine.
Disclosure: The author - Olusegun Oyekanmi - owns some bitcoin and other cryptocurrencies such as Verge. This is not financial advice in any way as he is not qualified to do so. This blog piece is simply his opinion. Cryptocurrencies of all sorts are very volatile, and as such, do not invest more than you can afford to lose. Please speak to your financial adviser before you do so.
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