Bitcoin (BTC) Price Analysis: Price Could be Headed for Low $3,000’s or Worse

December 13, 2018 / by Bill Noble

Fibonacci Angles

Bitcoin (BTC) has currently failed at resistance near $3,361 and now appears ready to head for levels like $3,125 or perhaps $3,000. Bitcoin (BTC) has been very responsive to analysis methods that use angles to find levels where big trends will stop and start.

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200-day Moving Average

The 200-day moving average can help create a scientific approach to finding price targets. For instance, we are currently watching where Bitcoin (BTC) is relative to its 200-day moving average. Looking back to the Bitcoin (BTC) bear market of 2011, we noticed that Bitcoin (BTC) bottomed out 76 percent below its 200-day moving average.

At present, 76 percent below the 200-day moving average in Bitcoin (BTC) is at a really low level at $1,500. So, even though that sounds extreme, it becomes a possibility to be considered. With that kind of theoretical target, Bitcoin (BTC)falling below $3,000, seems very possible.

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Why Has the Selling Restarted

Recently, the equities universe has been shocked by a number of big hedge funds showing big losses and/or closing their doors. Many people expected these big equities hedge funds to come in next year and add Bitcoin (BTC) to their holdings. That may not happen right away, which is why Bitcoin (BTC) may go down in a volatile bear market.

The Bitcoin (BTC) bear market can offer opportunities to make profits regardless of which way Bitcoin (BTC) goes. The idea of a final down move in Bitcoin (BTC) could lead to a “V” bottom. In a “V” bottom, there is a sharp decline, followed by an equally sharp reversal up. This type of price action can allow traders to make money on the sharp decline and then pivot and perhaps catch the wave up.

The Bitcoin (BTC) chart offers a unique, and perhaps historical opportunity, similar to the setup up that led to the bottom in stocks in 2008. The Crypto.IQ trading desk has many tools to help premium users profit in the event 2019 is the year of the Bitcoin (BTC) V bottom.