Despite a minor 5% drop in Bitcoin’s price overnight, Zoran Kole, a highly respected trader, says you are yet to witness the bottom of the pit.
From a day’s low of $8,600, Bitcoin recovered to $8,800 compared to a price of $9,100 on November 8 within the span of a few hours.
Although a strong performance was recorded in the past two weeks, Ethereum and XRP are predicted to slow down because of a bearish short-term Bitcoin trend. The initial outlook was a continued upward movement in price but this was overturned by technical analysts.
Historically, after a sideways consolidation in price, a large move in the price of Bitcoin has occurred due to stability in price ranges. Contrary to expectations, Bitcoin broke down below the support level at $9,200 in a short time. The price break down caused a domino effect in liquidations of long contracts across major crypto margin trading platforms.
Technical and fundamental factors that could promote a large Bitcoin recovery rally are hard to find by analysts since the fall below $9,000.
Alternative cryptocurrencies could perform better in price increases because of the fall of Bitcoin below support levels, but altcoins like Ethereum and XRP would record losses against the U.S. dollar.
Bakkt, a Bitcoin futures market, has been recording a gradual increase in daily trade volumes. Bakkt is a variable in the bouncing back of the price of Bitcoin but an insignificant one yet. Bakkt recorded a new all-time-high daily volume level on November 8 despite a sharp fall in Bitcoin’s price against the U.S. dollar.
Would the cryptocurrency market price assets with the influence of developments such as the launch of Bakkt? It remains unclear if the highly expected launch and the anticipated rise in trade volumes at Bakkt could actually affect the market, as was widely expected.