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Bitcoin price news: Could BTC continue four-year January losing streak?


Bitcoin (BTC) enjoyed a bright start to the year, which witnessed a steady price rise. The flagship cryptocurrency even rose about the psychologically important $4,000 level, fuelling hopes a long-term recovery could be on the cards. Bitcoin’s prices have however since seen a slump, making it possible BTC’s dry January run will be prolonged for another year.

The bitcoin price is £2,805 ($3,606) at 6.00pm GMT (UTC), according to CoinDesk.com data – approximately two percent down on January 2019’s opening price.

Bitcoin witnessed a calamitous 32 percent drop in the first month of January.

And history repeated itself for the next three years, recording falls of 14.6 percent, 0.10 percent and 26.64 percent respectively.

And the odds are again stacked in favour of BTC extending the four-year January losing streak.

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BTC fell 13 percent last week, following a short-term corrective bounce from the December low of £2,429 ($3,122).

The crypto sell-off helped cement the bearish sentiment posited by the sloping 10-week simple moving average.

Consequently, few investors would rule-out yet another drop before the end of January.

However the belief in bitcoin beating the bearish would be buttressed if the former support-turned-resistance of the 21-day moving average is scaled convincingly.

READ MORE: Could crypto commence new bull cycle?

Such a breach would support the short-term bullish case.

Eric Thies, a cryptocurrency technical analyst believes the volatile digital asset could initiate a strong upward movement by the end of 2019.

This would mirror the price movement bitcoin witnessed in 2015.

Mr Thies said: “Similar to 2015, 2019 may be the year of accumulation.”

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And this would hold true even if bitcoin demonstrates wild volatility in the low range of $2,000 to $4,000 in the coming weeks.

However, Willy Woo, a cryptocurrency researcher, thinks the on-chain volume of Bitcoin remains too low to suggest the establishment of a proper price bottom.

Mr Woo explained that while the steep drop of bitcoin from £4,669 ($6,000) to £2,450 ($3,122) led to an increase in volume, it did not show any sign the initiation of an accumulation period.

Mr Woo said: “Despite the technical setup that suggests bullishness is possible, there’s not a lot on-chain volume to fuel a prolonged up move.

“What we saw in the last 7 weeks was a spike of on-chain volume driven by volatility, coins moving to exchanges to trade.

“The initial volume spike false signalled a faster detox and an earlier end to the bear market, but in fact it was a volatility side effect.

“That move from $6k to $3k created immense trade volume, but it was in no way a signal that accumulation volume had begun.”

There is a growing cryptocurrency consensus bitcoin associated assets could take months to start showing evidence of accumulation in the cryptocurrency exchange market and on over-the-counter trading platforms.

Until that happens, most analysts expect continuing levels of low price range volatility, making it possible bitcoin will revisit its yearly low.



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