Bitcoin struggles around the $10,000 level – analysts warn of a 2018-style price dump
Aug 22, 2019
Since Wednesday, the bitcoin price has been trading around the $10,000 level, according to numbers from Bitstamp.
The level has been considered to be a support, but the price has gone both below and above it over the last 24 hours.
Many in the crypto world are now wondering where the price will head next – and whether $10,000 will act as a support or become a resistance.
Analysts are pessimistic
According to several crypto analysts on Twitter, bitcoin may have a tough time ahead.
Crypto trader Josh Ragerconsidered that bitcoin should have a daily close at above $10,200 in order for the chances of continued upturn to remain, however the world’s biggest cryptocurrency failed to do so.
Other analysts have been even more negative. For example, the crypto personallity The Crypto Panda warned on Wednesday that the bitcoin price could collapse just as it did in November 2018 when it reached levels around $3,100.
“I foresee another Nov 2018 style dump”, The Crypto Panda writes on Twitter.
“Difficulty bottom (100%) starts a new bull market”
Another crypto personality on Twitter, Plan B, writes that the mining difficulty, ie an indicator of how much computing power is needed to validate bitcoin transactions, must reach a bottom before there can be price increases.
“After each ATH, bitcoin price drops until a lot of miners aren’t profitable. Miners switch off hardware (capitulate), hashrate drops, and difficulty adjusts downwards .. until miners become profitable again and difficulty rises. Difficulty bottom (100%) starts a new bull market”, Plan B writes on Twitter.