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Has Bitcoin bottomed out yet?

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As Bitcoin alongside the whole market keeps going down there’s a question in everybody’s mind: are we at the bottom yet? This is not a pessimistic question at all. We all know that the market will recover sooner or later, but we also know that won’t happen until it reaches rock bottom. So what answers do we have?

Well, there are no sure answers, but technical analysis can bring some light into the question and, maybe, guide the way.

Some twelve hours ago, Bitcoin was at around $4100 and the chart allowed to apply a model called “cup and handle.” Without going into technical and mathematical detail, this model is a prediction that says the price will go down as if rolling down inside a bowl, reach the bottom, and then go back out rising on the bowl’s opposite side. One of the most popular projections using this model extends from today until next March (that would be the time at which the market will be steadily rising again).

According to the “cup and handle” Bitcoin still has a long way to go down. Probably as low as 3000.00 USD before it will bounce back and rise again. At this point, it should skyrocket.

The next pertinent question would be how accurate is the “cup and handle” model. Well, the thing about technical analysis is that it is has nothing to do with certainties but with probabilities. Nothing is written in stone, the best you can say about it is that it’s likely.

Some analysts give this prediction a probability as high as 70%, but the truth of the matter is that we still lack enough relevant data to support it. And that’s one of the reasons why buyers are staying away from bitcoin and sellers dominate the market. There’s just not enough data about the long-term to make an educated choice.

One thing that’s been materializing over the last half a day is that Bitcoin has been going down very quickly. It’s at $3,739 as we write this. Since it’s broken so many psychological barriers this year, it’s quite likely that it will keep going down and hit $3,000 some time not too far in the future.

It could even be this week, but there’s no way to know. It keeps going down as we write this article, so the answer to the article’s question is, quite clearly that no, we have not gone all the way down yet.

The good news is that the Bitcoin market shows signs of maturity, even as it plummets. The current BTC trading volume is of roughly 6.5 billion, and it remains the most traded asset with a market share of 54%. It’s expected for this share to go up to 57% as it keeps losing value and people traders try to get rid of their bitcoins.

Just to finish, don’t let your wishful thinking get the best of you. Bitcoin (BTC) could bounce back at any moment, but for the trend to be broken, a change in price is not enough. It has to be accompanied by a massive increase in trading volumes.

Until both things happen at the same time, any rise in Bitcoin price will be fake, just a natural market fluctuation that will be meaningless regarding the bigger picture. So just be patient and disciplined. Keep watching the market. It will bottom out, and the right time to get in will come soon.

For real-time trade alerts and a daily breakdown of the crypto markets, sign up for Elite membership!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image Courtesy of Pixabay.

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Bitcoin

Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry

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Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.

Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.

Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.

Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.

Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…

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