2019 is coming to a close. However, the digital asset ecosystem continues to create waves of price speculation.
The last 48 hours have been extremely volatile for Bitcoin after the world’s largest crypto-asset breached its 6-month price low and registered a valuation of just over $6500. Many feared a strong decline for BTC’s price after the fall, but after a rigorous pump of around 11.42 percent, the king coin recovered its losses and at press time, Bitcoin’s valuation was over $7000.
Where is the market heading next?
The volatile price action has stirred up a lot of price speculation, with many major analysts at cross-hairs with each other over the current trend.
Most notably, Mike Novogratz, CEO of Galaxy Digital, highlighted warning signs which suggested that in order for BTC to escape a bearish pullback, the valuation had to consolidate above $7500 in the next 48 hours to avoid a further collapse to the 6k-7.4k range.
The bearish sentiment was also re-iterated by other crypto-analysts as well.
According to analyst Crypto Walker, the recent pump taking BTC above $7000 was ‘fueled by shorts’ as traders were covering their position after a drop in open interest in the market. He mentioned that certain bearish factors such as a high volume rejection at the $7400 resistance suggested that the bulls were celebrating a false narrative at the moment.
Is it a rare bull opportunity?
Despite the bearish claims, however, a bull run is not out of the picture, according to the reputed analyst PlanB.
PlanB, the creator of the S2F model, recently suggested that a bounce back above $10,000 for Bitcoin before the end of 2019 will not ‘surprise’ him as he believes that such a situation is rare in his S2F model, before the halving next year. Bitcoin’s price is currently underperforming by a difference of $1200 below the S2F’s estimate and previously, PlanB had suggested that BTC’s valuation would average around $8300 before next year’s halving.
In response to PlanB, Willy Woo had asserted the same claim. However, he had also stated that Bitcoin would need to cover that $1200 within the end of November, otherwise, Bitcoin may re-test new lows in December.
With the underlying volatility in the market, the aforementioned predictions are all substantial in its own place. However, an accurate turnaround would be hard to call in the current Bitcoin market. It has also been speculated that Bakkt’s cash-settled Bitcoin Futures contracts launching on 9 December in Singapore may have an impact on the market. Still, a particular long-term trend is difficult to predict at the moment.