Bitcoin and cryptocurrency, in general, has been one of the hottest topics for the year 2018. The year 2017 was the best year for Bitcoin as it was highly bullish, we saw the price go as high as $18,000 during the year-end. However, it wasn’t long before the price started dropping. In fact, within the next seven days after hitting the all-time high, the price of Bitcoin lost about one-third of its value falling from $18,000 to $13,900.
The market was bearish after December of 2017, the price of Bitcoin dropped almost over 50 percent within 16 days settling down at the $6200-6500 mark as of when the article was published.
What to expect from Bitcoin in 2019?
The price of Bitcoin took a sharp drop on October the 3rd, 2018; it dropped to $6,436 which is below the horizontal support. Horizontal support is basically a key point analyzed through a price chart. The drop can be a sign of an even worse slump also known as “breakout from the outside,” this term is often used after the price drops below the horizontal support.
Although the price has recovered since the drop occurred (BTC is currently trading at $6,566), analysts still aren’t very positive about the most expensive cryptocurrency’s value.
Expert cryptocurrency analyst Nikola Lazic has predicted that Bitcoin’s value would further drop in the upcoming months. He stated, “I am expecting a breakout from the downside because the horizontal support has already been broken today, the red triangle’s support has been broken in the past when the price found support on the symmetrical triangle’s uptrend line which was respected in the past.”
“If that last support gets broken then we are definitely seeing a lower low which would be below $5767 (£4,458).” He also said that “it could get really bad.”
Furthermore, the only Bitcoin trust located in the United States of America isn’t doing so well at the moment either. Grayscale Bitcoin Investment Trust which is known as GBTC in the stock market lost about 80% value on its’s share prices. This means that billions of dollars have been wiped from the market cap of the Grayscale Bitcoin Investment Trust.
A report by Bloomberg’s financial experts says that it isn’t just the bearish market of cryptocurrency which is to be blamed for this but also the high fees charged by the trust. And that completely makes sense because Grayscale Bitcoin Investment Trust charges 2 percent transaction fees which means if you invest $100,000 in the crypto market, $2,000 would be deducted as the trust’s fees.
The 2 percent fee is high compared to other mutual funds which usually charge a 0.59 percent fee and the awful combination of low Bitcoin prices and high trading fees triggered the reduction in GBTC’s value.
“Expense ratios are insane for these funds, and the current Bitcoin price is creating more problems,” Naeem Aslam, the London-based chief market analyst at TF Global Markets U.K. Ltd., told Bloomberg.
It is essential to keep in mind that the cryptocurrency market is almost unpredictable and has surprised us many times, the price keeps fluctuating and has fluctuated all year around. The predictions by expert analysts might be right but they are all predictions, and thus, they might well be false too. In fact, some analysts predict that Bitcoin might rise above $10,000 by year-end. They say “the harder the fall the higher the rise.”There’s always risk involved when investing in a decentralized digital asset.