Bitcoin (BTC) Meets New Year with a Slide
BTC is once again teetering on the edge of a price drop, as the $7,300 support level was lost again.
Bitcoin (BTC) will end 2019 on a downward note, after breaking down below the $7,300 support level. BTC failed to rally after breaking above $7,500, and the latest gains turned into just a short-term weekend rally.
On the last day of 2019, BTC sank to $7,277.66, re-sparking fears of a deepening downward trend and a search for new lows. Until the last moment, it has been highly uncertain what direction the leading coin could take.
BTC trading volumes were also unwinding, down to about $22 billion’s equivalent in 24 hours. The BTC market cap dominance is stuck at 68.2%, as altcoins once again slid even faster.
For 2020, the consensus is that BTC may move sideways, or go through a slide retesting continued lows. There is cautious optimism that a rally will be possible, though few expect a direct path to much higher valuations.
In the last month, BTC broke out above several resistance levels, but those moves failed to spark a bigger rally. The leading asset essentially remained stuck, unable to break above $8,000 again.
Renewed predictions see $7,800 as the new potential resistance level that, if turned into support, could lead the BTC price to a higher range of stability. But unlike earlier years, BTC volatility is down again. The BTC volatility index shrank from about 4% to 3%, as prices move in a smaller range.
Crypto sentiment has been on the negative side toward the end of 2020, and the mood may continue in 2020. The question now is whether BTC would gain enough support to retain stability, or would plunge to a temporary low.
For 2020, extreme predictions include new highs, repeating usual numbers of $20 to $50,000. Extreme lows predicted by Peter Schiff see BTC slide as low as $1,000. The more conservative prediction see BTC making a temporary low at $5,000, but also possibly recovering to the $10,000 range.