Bitcoin prices fell to nearly $17,600 today, declining to their lowest since late November before bouncing back.
Since experiencing this volatility, the digital currency has been trading primarily within a relatively tight range between $18,000 and $18,500, CoinDesk figures show.
Following this pullback, and the subsequent recovery, several market observers helped shed some light on the cryptocurrency’s situation.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Analysts Weigh In
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, emphasized that “even though the price dropped below $18,000, the bounce back above this level means the support is still valid.”
He predicted that in the “near-term,” $18,000 will provide support, while $18,500 will serve as “immediate resistance.”
Ilia Maksimenka, CEO and founder of global payment platform PlasmaPay, also weighed in.
“Bitcoin was unable to make a significant move past the December 2017 all-time high,” he stated.
“The bears stepped in to prevent the price from breaking above the $20,000 psychological price point and were able to push it back below $18,000, tagging the 61.8% Fibonacci retracement level of the previous major pivot low,” said Maksimenka.
“The bulls quickly stepped in to buy Bitcoin at this price and kept the price within the well defined parallel channel,” he stated.
Focusing on key price levels, Maksimenka offered some forecasts.
“If $17,600 is defended and respected, then the bullish Elliott wave count shows a move up to test the $21,000 resistance level,” he stated.
“If this level is not defended, I expect the bears to push it all the way back down to $16,000, where the median line of the pitchfork should act as support.”
Jason Lau, COO of cryptocurrency exchange OKCoin, also leveraged technical analysis to offer a price prediction for the digital currency.
Lau emphasized that he is playing close attention to bitcoin’s monthly trendline, and if the cryptocurrency closes below this line, he will “expect a drop to $16,000s range.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.