Bitcoin price (BTC) has been breaking key support levels since the bearish trend started at the beginning of the year. Traders and investors confidence dropped sharply after bitcoin plunged below the physiological $6000 level two weeks ago; the coin price plummeted to a new yearly low of $3500 on Sunday – the drop of more than 45% in November.
Bitcoin price is down close to 80% from its all-time high, and the selloff has wiped off more than $250 billion from its market cap in the past eleven months.
Some analysts are claiming that the bear trend could drop bitcoin price to $1500 level while others are of the opinion that bitcoin would find support around $3000 level.
Traders and investors are wondering how low bitcoin price can go? The market participants are yet unsure where the largest coin will move in the future, due to its unregulated nature and speculative price movements. One analyst, however, believes that the survival of crypto coins is dependent on its investors and lovers.
How Can Bitcoin Price Survive?
CNBC’s Elizabeth Schulze says the cryptocurrency market believers and investors could help in repelling the bearish trend. She said, “Bitcoin’s success ultimately hinges on its customers, its buyers believing in it. So it is not centrally backed. No authority is going to come in and say ‘we will buy bitcoin if nobody else does.”
The second factor is its underlying technology that could help in the survival of crypto markets. Blockchain technologies are gaining the confidence of businesses and investors all over the world. Indeed, the majority of companies in the financial and tech sector have already started using blockchain technologies for different purposes.
“The technology that underpins bitcoin is blockchain. Blockchain extends well beyond just bitcoin.“This is a space that companies across tech, healthcare, and finance, are looking at how they can use blockchain to make their operations more efficient,” she added.
Bitcoin Price Will Bounce Back Sharply
The bulls are of the opinion that bitcoin price has substantial upside potential. The founder of Yield Coin Samuel Leach is one among those analysts who firmly believe in bitcoin as a medium of exchange and store of value.
Top 10 CryptoCurrency Price Analysis Today
He blames bitcoin cash hard fork for the drop in prices; saying “The bitcoin downturn that we’ve seen over the past 48 hours is most likely as a result of market fragmentation, with Bitcoin Cash – the fourth largest currency regarding market capitalization – experiencing a hard fork earlier this month.”
The expert says the bleak outlook for smaller altcoins has been putting pressure on the entire industry. However, he sees the drop in bitcoin price as buying opportunity. It’s true that investors love to buy assets at lower prices. But in the case of bitcoin, retail traders are showing concerns on the future fundamentals, amid several warnings from financial institutions and prominent Wall Street analysts. Unfair trading activities and immature cryptocurrency exchanges are adding to negative sentiments.