BTC is dropping to the lowest value this year at 5,447 US dollars. Some of you might argue that those are bad news, however, technically speaking the timing couldn’t be better. Before Bitcoin started its bull run the price was at a similar level.
BTC is Dropping and with it the Whole Crypto Market
On October 17, 2017, BTC price was 5,472 US dollars, and shortly after that, it started to climb to higher values. The difference between then and now is that many ICOs where launched. Investors decided to back-up the projects with hopes of seeing the ICO close to the BTC price or surpass it.
However, that was not the case since some ICOs where scams and others didn’t deliver working solutions to the blockchain. If BTC will follow the same path similar to the previous year remains to be seen. Most likely this drop will filter out traders that purchased BTC recently for a fast profit.
Buy or Sell BTC?
Before answering the question, I will like to ask our audience if they still believe in the future of cryptocurrencies. If the answer is NO, then you probably won’t understand if this is an excellent opportunity to invest in BTC. That’s because some investors and traders want to get rich fast without understanding when and how to buy BTC.
The GET RICH FAST SCHEME is long gone, and now prices will look more realistic. Why do we care? If we decided to include Bitcoin in our portfolio, it means that we understand when it will pay off. Experienced traders are already purchasing BTC and other cryptocurrencies since they know to buy low and sell high. If Bitcoin repeats the same move as last year, investors will be able to achieve gains of 200%.
Will BTC Hit $15,000 by the end of Q4?
Bitcoin might not revisit the 20,000 US dollars this year. However, analysts are speculation on a price of at least 10,000 US dollars. Not what everyone expects but still a good gain. Even if Bitcoin will gain only 50% by the end of Q4 is still not bad. Let’s talk about returns on investments for BTC and other cryptocurrencies calculating the time need to achieve gains of 100%.
First, we will define out investment and assume that 1 Bitcoin equals 5,500 US dollars.
Second, is creating the market conditions for the remainder of Q4, which is 43 days.
What do we need to see a 10% increase in price? Assuming that prices will not drop below $5,500, we will probably see 10% returns in our first week. For this condition to apply the whole market needs to pick up the slack, meaning more positive fundamental events.
Second Week in December Will Determine the New Actual Value of BTC
Continuing our exercise, the following 15 trading days will create higher volatility for Bitcoin prices. From the price of $5,500 to the BTC price of $6,050 we will probably see another 10% or 15%. Averaging that to 12%, the final Bitcoin price might look something like $6770 before the second week of December. We just made 10% gains at a Bitcoin price of $5,500 and another 12% at a price of $6,050.
We just created a new support and resistance levels without the use of charts and looking towards the next step. Our analysis for BTC is based on fundamental and technical factors where the fundamental is one of significant importance. Without it, BTC prices might bounce between resistance and support for the remainder of Q4 with no sure prediction. Assuming that BTC prices will fall to $6100 will still reward us 11% from the total of 22% earned previously.
Whether BTC prices will follow the same path as the previous year remains still at the mercy of fundamental news.
If you decide to invest in BTC chose form This List, please do your own research and always spend only what you can afford to lose.
Remember that our BTC analysis is pure speculation based on significant events where news is impacting the actual outcome.
Bitcoin might surpass our expectations and reach new highs where gains of 50% can be seen.
Also, it is not excluded for a BTC price of $3,200 and $3,100 respectively in the last two weeks of Q4, 2018. even if that will happen based on previous data and technical analysis we can see BTC price recover up to 20% or 25% in the last week of 2018.
Like always I wish you all Happy Trading and Every Success!