Bitcoin (BTC) price drops to about $3700 to quiet predictions of a bullish spark in price, and lows of $3300 should not be a surprise.
Bitcoin price suddenly shot up about 14 days ago, racing for the $4000 mark, after a long tepid dally between $3300 and $3600. The sudden increase was attributed as a late response to the new JP Morgan native coin by some circles while others discarded it and noted Nasdaq’s encouraging development as the catalyst for a bullish run.
The rate of increase has been slower, however, and ‘bullish’ might be a word yet too strong for now, as price continues to dwindle and the earlier momentum looks lost. The crypto launch of a native cryptocurrency by one of the largest banks in the world had been projected, especially by Bloomberg, as perhaps the underestimated catalyst for a new bullish run and an escape from the bearish trend that has plagued the cryptocurrency market for since last year.
JP Morgan’s new coin (JPM) was touted as the catalyst for the sudden rise of the crypto market after the top ten coins by market cap including Bitcoin, Ethereum, Ripple and Bitcoin Cash all showed improvements and increase of more than 26 per cent.
While other analysts discarded the notion of JP Morgan’s news being responsible for a potential bull, a hedge fund source explained why the development was a plausible explanation. “Every adult with a bank account and a job knows who JP Morgan is,” he said.
“So the announcement of a native cryptocurrency brought interest to a renewed and fresh level that had been diminished throughout nearly all of 2018. My wife even asked me about it the day after it was announced.”
The drop of Bitcoin price from previous set monthly high to a six-day low dangling below $3700 has thrown out the bullish ‘long-tailed doji’ out of the discussion. With the price of Bitcoin not improving any further at previous rate and leaning slightly below $3700, analysts are expecting a bearish reversal if prices see a UTC reach a closing value below $3658.
However, while further decline should be expected, if Bitcoin price pushes above $3, 897 following a steep increase at the early hours of today, it might just strengthen momentum for the first optimistic signs of an otherwise bullish reversal.