Bitcoin (BTC) briefly collapsed to a new 2018 low today, leaving everyone continuing to wonder how much lower it could realistically go.
BTC is currently down more than 83 percent since reaching an all-time high of nearly $20,000 last December. At the time of writing, Bitcoin is trading at $3,260 per BTC, with one wick this morning that touched $3,162.
The weekly chart shows Bitcoin approaching a range with a bit more support, from $3,000 down to $1,800.
On its current trajectory, it seems like BTC could reach these levels in the coming weeks and will most likely make a significant bounce when it finally hits bottom.
Relative Strength Index (RSI)
A look at the weekly relative strength index (RSI) shows Bitcoin (BTC) to be hovering slightly above its all-time low in January 2015, when it sunk to a value of 27.
Last week, Bitcoin finally broke back into the oversold territory below 30 and is down to 29 as of today. This could potentially be a strong signal that the bottom is in sight and Bitcoin could finally start to work on a reversal.
Down The Tubes
Since falling off of a cliff at $6,400, BTC has been bouncing between a descending wedge leading to the $3,000 to $2,800 range.
In the case that Bitcoin reaches $2,800, Bitcoin will have lost more than 85 percent from its previous all-time high, officially making 2018 the worst bear market in Bitcoin’s ten-year history. Today is the 363rd day since BTC began its fall last December.
During the last bear market, it took Bitcoin nearly 1,200 days to go from a high of $1,100 in November 2013, down to $191 in early 2015, and return back to its previous high in February of 2017.
While Bitcoin may be on the cusp of finally reaching a bottom in the current market, it may still be quite a long time before BTC is able to retake its $20,000 peak.
The daily chart does not look good for those hoping that BTC will not go any lower than it is already. Bitcoin is likely to remain in the descending wedge to complete the pattern and there is no guarantee that a bounce to the upside will be waiting at the end of the tunnel.
Traders may look to set up long positions at pivotal support levels to try and ride the next wave up but should be very careful in setting stop-losses in the case of more downward movement while also planning where to take profits in the event of a bounce.
Do you think Bitcoin (BTC) will break below $3000 this year, or ever again? Will $20,000 per BTC make a comeback in 2019? Let us know your thoughts in the comments below!
Images courtesy of TradingView.
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does hold BTC.