How low can Bitcoin go before you start to get worried?
Despite doubling this year, bitcoin's price has gone down for months. At what point do you start to worry?
I have a very exact answer.
Worry when the price drops to $4,910.
If bitcoin drops below that price, all hell will break loose. That price marks the 200-day weekly simple moving average, a key price level that bitcoin has never dropped below.
Ever.
See it on this chart, marked with an arrow:
While that number will get slightly higher with each passing day, it remains the absolute floor for bitcoin. Each time bitcoin’s price flirts with this level, it goes back up.
If we hit that price and keep going down…well…things will get, shall we say, interesting…
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Some believe that the stock market will crash and if so, it is possible that bitcoin will take a deep plunge as well as desperate people scramble for money. But then is should recover again some time after that. What is your prediction for 2020?
I'm the worst at predictions! It would really surprise me if we don't see cryptocurrency get a lot of new money. If you look at the data, Gen Z reports crazy-high interest in crypto, 30% or up, plus US millennials are inheriting more money and show higher preference for crypto than their parents and grandparents. On top of that, Wall Street has gained a small foothold in the crypto markets and continues to expand its activities. Certainly the interest is there.
Plus, a lot of those 2017 ICOs have either died or produced real, actual products. And the total market is very tiny, it has not much more room to fall lower.
So, "up" is my prediction. What about you?