The market cap of the world’s leading cryptocurrency has established its new yearly bottom.
Bitcoin on Monday continued its downtrend, and its valuation dropped to a new bearish low at $92.53 billion. At the same time, the value of the digital currency fell to an average of $5,322, according to aggregate information available at CoinMarketCap.com. Overall, the bearish action intense the chance of Bitcoin establishing a double bottom anytime this year.
As reported on CCN last week, the forking of Bitcoin cash has turned out to be the main catalyst behind the market-wide downtrend. Bitcoin is an asset that's more stuck inside unwelcomed negativity, particularly when the chief of a giant mining company determined to reallocate their Bitcoin hash power to support Bitcoin abc, one of the Bitcoin cash blockchain splits. Whereas the trend should live for short, it has left a giant dent on the face of the whole crypto market, that currently seems more unstable to potential investors than ever.
Analysts currently forecast an extended downside run for Bitcoin. Leading crypto pundits Willy Woo and Crypto Rand believe that the digital currency might drop further towards the $4,500-5000 range. The prediction via Bitcoin NVT ratio, that divides the digital currency’s market cap by its average daily volume, is additionally bearish. It plays into a narrative of bitcoin doubling down its price in the near-term future.
A different analysis by Bitcoin bull Tom Lee predicts Bitcoin to reach $15,000 by the end of this year, calling the aftereffects Bitcoin cash forking short-term. However, Fundstrat founder has deviated away from its $25,000 prediction created earlier this year, indicating that it's going to change each time within the face of latest fundamentals.
Technical Outlook
The latest worth action doesn't surprise CCN’s technical outlook. It had predicted that Bitcoin worth would try to retest its previous low – or the lower trendline of the current falling wedge formation at most. There is a powerful chance that bulls will attempt a powerful upside correction, giving adequate long opportunities towards the extent mentioned via the Fibonacci retracement graph within the chart below.
BITCOIN 1D CHART | SOURCE: TRADINGVIEW.COM
A further breakdown from here might bring the Bitcoin market towards the bearish targets of outstanding analysts – as mentioned above. Therefore, $5,000 serves as a potential primary downside target should the worth breaks below the lower trendline of the falling wedge formation.
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