Bitcoin Sliding to $5500 May Be the Best Buy-In Period
Bitcoin bears indicates buy-in for long-term investors and HODLers
Image source: pexels - bruce mars
With more intervention by the US Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC), Bitcoin prices have dropped in the past weeks and the market gets tightened. The additional regulations are purging market manipulators, especially the ones involved in Bitcoin futures trading.
Exactly how low can Bitcoin prices go?
This is the question potential investors are asking - while waiting for the best opportunity to enter the cryptocurrency market, after missing out on the earlier chances. The Crypto Fam, an online community of crypto enthusiasts, predicted that the downward trend is coming to an end. According to an article on Hacked.com - Sam Bourgi, researchers on The Crypto Fam noted that many Bitcoin wallets are cold, forgotten or lost, meaning that a lot of Bitcoin are not traded but held on as an intrinsic value.
A great deal of the total BTC supply is not traded. Some is lost forever in idle or forgotten wallets. Other Bitcoin is hodled by strong hands who never sell.
Source: Hacked.com - Sam Bourgi
Image source: pexels - David McBee
Bitcoin prices dropping to $5500 could indicate new lows
I am particularly excited by this piece of news because this could mean the best opportunity for a BTC buy-in. Traders who have looked forward to the Consensus 2018 event for a bullish move in bitcoin were disappointed. The crackdown and regulations by the US Justice department clearly had a much greater impact than speculations made by the community.
Analyst Willy Woo gave a reasonable analysis on Bitcoin prices pushing towards $5500, stating that low transactional activity could not revive BTC prices above $7000 at this point.
“When I run the above scenarios against detoxing at a $6800-$7000 floor, it seems a very unlikely path we’ll play out at the $7000 level. I don’t necessarily think we’ll fall through the 5000s… sure it’s a possibility but it doesn’t have to. It’s not a repeat, it’s not Mt Gox and Willybot pushing up price with faked orders, we aren’t detoxing from a scam bubble. Technically $5000s is a very strong support band.” - Woo
Source: newsBTC - Ricardo Esteves
Image source: pexels - Burak Kebapci
Be prepared for the next buy-in
Blockchain venture capitalist Spencer Bogart also weighed in on the BTC prices, believing that the maturity, stability and instituitionalization of Bitcoin would give it a potential value in the long run. Bogart also notes that ethereum, ripple, bitcoin cash and EOS is good to hold for now while coins like Cardano, TRON, IOTA and NEO should be sold off.
"Every major bank is trying to do something in the space. Either they're going to be offering bitcoin to their clients, they're working on a custody platform or they're opening up a trading desk. A deeper institutionalization of bitcoin is overall positive," Bogart said.
Source: CNBC - Kellie Ell
Bitcoin miners also seem to be very optimistic on Bitcoin, as the hash rate for mining remains high (source: Forbes - Naeem Aslam). To my understanding on ASICs mining, these miners simply have nowhere to go, as their mining equipment were built solely to mine Bitcoin. Mining companies could be the biggest losers in Bitcoin, as market cap drops from $180 billion (March 2018) to $125 billion (May 2018).
As for potential buyers, be prepared to invest into Bitcoin when it prices drops to $5500.
We are expecting some bullish signs because it’s enough dumping after last year peak. Hope for the best.
I hope that it would drop further for a good buy in :)
Whew, definitely one of the lower target calls. We'll see. It sure would be a painful experience for many. Weak hands won't be able to handle that. And the blood will bring out the savvy. Might be just what we need. Thanks @tysler.
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Yes not for the weak hands. Most importantly this purges out market manipulators, so that we can expect better stability in the future.
its not a bad thing to have a correction but this looks like a shakedown for me. whales are shaking the weak hands for a re entry themselves. just when you will sell your tokens you will notice a bull rally.
No whale movements for now, but yes it is likely for some shaking. Had high hopes for Bitcoin Cash to see it drop the next day :(
every token dropped big time the only exception i see was EOS which dropped less in comparison. there are small opportunities every now and then which you can take advantage if you were buying regularly on the way down. ZRX and ADA are up by 15% from yesterday so those who followed a ladder approach for buying would be able to some damage control.
Your writting skills and article is good thanks for sharing with us, Especially for crypto/bitcoin related information...
Will it fall below $4400