Bitcoin is Now $4,200. Is it Time to Buy?

As of today, November 25, 2018, Bitcoin is trading at around $4,000, but it touched $3,585 earlier during the day. This is the lowest level since September 2017. Those who jumped in the crypto bandwagon in December last year or January of this year are surely disappointed with the current market disaster.

And it’s not only about Bitcoin and the crypto market. The general macroeconomic background and the economy as a whole do not look very impressive now. Microsoft surpassed Apple by capitalization, everything is red on the stock exchange, oil goes back to $58 per barrel, VAT is rising, and the currency hyperinflation in Venezuela shows some astronomical figures.

The steeper bearish trend started with the Bitcoin Cash fork. Earlier this month, BCH, which is itself a fork of Bitcoin (BTC), split into two blockchains as the community could not agree on the future direction of the coin. Thus, BCH was divided into BCH ABC and BCH SV, with the latter being supported by Craig Wright, often nicknamed fake Satoshi (as he pretends to be the creator of Bitcoin). So, what does it have to do with Bitcoin? Well, it’s because the two communities behind BCH ABC and BCH SV are fighting a so-called hash war, in which miners are trying to gain dominance over the Bitcoin Cash network. If one of the newly created forks reaches dominance in the hash rate (let’s say ABC), then the other one would totally fail (let’s say SV). However, a scenario in which both versions continue is also possible. Anyway, the point is that the groups behind BCH ABC and BCH SV are selling their Bitcoin to fight this war, which is driving the bearish trend.

Oh. And @JihanWu and @rogerkver selling… they will also have to sell BTC to pay rented hash.

If this is a long war… expect 2014 prices in BTC… think what that does…

Have a nice day— Dr Craig S Wright (@ProfFaustus) November 14, 2018

Also, the market itself is disappointed in the confusion and disagreements, which also puts pressure on the BTC price.

So, is it time to buy now?

Well, I wouldn’t say so. Even though Bitcoin recovered some of its Sunday losses, it’s still keen to break another support level and go even lower than $3,500. You should better wait until the situation with the regulators, especially with the US Securities and Exchange Commission, becomes clearer. Also, think about the fact that Bakkt, the subsidiary of NYSE parent ICE, postponed the launch of its Bitcoin futures trading platform to January 2019. They don’t want to launch now because they feel this is not the bottom yet.

The head of Genesis Trading, Michael Moro, told CNBC that the fall in the price of the largest cryptocurrency would stop at around $3,000. However, some experts anticipate that Bitcoin might fall to as low as $1,500. We don’t know yet – but one thing is sure: this is not the right time to buy. You should better wait for another bottom before entering the market. I know it’s difficult to accept that Bitcoin can be traded at a lower price, but the technical analysis indicators are also pointing to another bottom. So keep waiting until the right time!



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