After weeks of what many anti-Bitcoin pundits call “threading” for life; Bitcoin finally broke from its stable US$6,000 – US$6,500 range, down toward US$5,000. While it wasn’t exactly surprising for us at Coinsauce, it had definitely triggered a massive negative sentiment. For weeks (and months) now, the market had seen tonnes of good news, from the soon to be launched Bakkt exchange supported by the NYSE, VanEck Bitcoin ETF, the entry of the Ivy League (Harvard etc) endowment funds into the market, as well as positive talk from CFTC, it was hard to accept that Bitcoin’s prices hardly moved. Now that it moved – albeit downwards, what’s next?
Prepare for the lows
Until this week, not many diehard fans of Bitcoin entertained the possibility that Bitcoin might be again trading at US$3,000. However, it seems more than likely now as technical analysis experts can confirm. While we have written in the past that institutions have collected Bitcoins at prices between US$6,000 and US$6,500, leading many to believe that it was range trading at a “floor” – this premise of the “floor” turned out to be false.
The latest price movement should probably set all hopes for a year-end price rally to rest. As it turns out, bulls have to wait a little bit longer.
Panic “hodlers” who have no idea what to do next, can approach the market in a few ways. First, sell Bitcoin and convert to fiat. This is probably least popular if you are a “hodler”. Second, as many alternate coins are trading at lows versus Bitcoin, it is time to consider picking up again, and if we were investment advisors, we might even recommend taking a look at Litecoin and Ethereum based on these merits alone.
Less we forget to finish off this with the third option; if you have more cash – do consider seriously buying more Bitcoins, Ethereums etc. Why wait till the rally to start buying? IF Bitcoin Cash’s recent undoing and Ethereum’s second coming (with the introduction of Ethereum 2.0) didn’t do enough to convince you, then we honestly do not know what else.
It looks more likely now that the entire market will only start seeing signs of a rally come first or second quarter of 2019. The market is still looking for a catalyst, and it could be triggered by SEC’s approval for the VanEck ETF, amongst others. One thing’s for sure, “hodling” has never failed investors such as us who have seen Bitcoin crashed “upwards”, without fail since its inception. Stay put, be patient, and hopefully we will see you on the other side of the rainbow?
Cover photo by: mahadassirisha