For the first time since October 25, Bitcoin has broken below the $7500 mark. The currency is very unstable at the moment and is constantly hovering around the $7000 zone, with no major indication of getting back to the previous value. However, a wide consensus of cryptocurrency experts predicts that the leading crypto can make a comeback in the following days. But, can Bitcoin stop its drastic fall and stabilize itself in the upcoming period? Continue reading to find out.
Recent Bitcoin Trends
Earlier this week, Bitcoin pulled a rather unpleasant surprise for the faint of heart. Dropping below $7000 in more than a year, it stopped at $6550 before stabilizing again. The following few days after the big price dump, the crypto was averaging sideways around the $7000 mark, unable to hit above $7200. Analyzing this price drop trend through three different metrics, we can say the following:
- 50 Moving Average – After the initial drop, the following 50 hours didn’t see any dramatic value rises or drops.
- 200 Day Moving Average – Observing the value through a 200 day moving average lense, it appeared that the coin has leveled out in overall value. This means that in the weeks after this, it could continue to go south.
- 50 Week Moving Average – Unfortunately, the 50-week average doesn’t look much better than the 200 days one. It reads that this cryptocurrency might drop to $5 if nothing changes.
Learning from Past Trends
Of course, no matter how bleak these predictions might seem, it’s still fairly early to say anything. The current trend line needs to hold the coin’s value above $7000 if any gains and improvements, in the long run, can be measured and calculated. Also, it should be mentioned that long term calculations usually have bullish tendencies, while shorter one tends to be bearish.
Since this article has so far been pessimistic to some extent, let’s take a look at the situation from the other side. The reality of the current situation is that Bitcoin is still ready to resume its stable long-term growth, despite occasional drops in value. The current trend line looks much like it did before the big boom in 2015. To be more specific, the coin remains on the edge of falling out of a secular bull market while the relative strength index is above 50, just like it was back then.
The Crypto Market in General
The overall situation of the crypto market hasn’t changed drastically over the past couple of weeks. The remainder of the altcoins are still pretty much at the same distance from Bitcoin as before. With that said, the crypto market has managed to make a slight recovery in the previous period and is now hovering around $197 billion. This is good news, although the market likely needs to face further consolidation before any major spike can be expected.
With the current Bitcoin value being as it is now, and if we were to trust the wide consensus, now might actually be a great time for Bitcoin owners to add more coins to their wallets before the coin returns to its previous value. Coincidentally, the timing of this drop could also play a big factor in Bitcoin’s value increase, as many online users might decide to treat themselves by buying this crypto when shopping fever hits on Black Friday. While there’s no telling for sure how the situation will unfold, there’s no reason for panic, as the leading cryptocurrency will most likely return to its recent high, the only thing remains to be seen is when.