We entered the last month of 2018 with the price of Bitcoin touching historical lows, with 2018 a year of sharp fall in the market price in general. There have been several factors that have landed the confidence of the market therefore the price has been affected.
The interest of small investors on cryptocurrencies has decreased by more than 90% (according to Binance), and according to Google Trends, Bitcoin’s search trend has decreased by more than 85%.
- Interest on BTC drives away a large number of small investors
- Bitcoin reaches minimums during 2018
- The constant fall creates distrust among investors
Analyzing the graph of the BTC/USD pair in one-day time, we can see how the BTC after multiple recovery attempts has entered a lateralization area in the $ 3900 $ 4200, a behavior similar to the one we saw before the sharp drop from the $6400.
The moving averages EMA 9/23 show us a possible continuation of the downward trend, looking for a support in the $ 3000 which was the support that many analysts were waiting for. On the other hand, the RSI remains well below 50% which gives us a bearish signal. Finally, the purchase volume has decreased again, which does not allow BTC to enter into a favorable trend.
Personally I think that Bitcoin has a high probability of touching the $ 3000 in this 2018, due to the fear that there is in the market.
- Moving averages EMA 9/26 bassist
- RSI (Relative strength index) 35%
- Support $ 3800
- $ 5000 resistance
This analysis should be used as an information medium; it does not pretend to be an investment advice. Investing in cryptocurrencies is highly risky; avoid investing the money that you cannot afford to lose.