Without a Push Above $8,000, Bitcoin Likely to End Year on a Bearish Note
2019 has been a rough year for the crypto markets, with Bitcoin’s price action and the overall industry development gravely disappointing investors. BTC is poised to end the year up significantly from where it ended last year, but it does remain in a precarious position.
It is also important to note that one analyst is claiming that there is currently a key price level that Bitcoin must end the year above if it is to incur any further gains, and it does appear that BTC is likely to end 2019 on a bearish note.
The End of the Year is Historically a Volatile Time for Bitcoin
Currently, Bitcoin is trading up marginally at its current price of $7,350, and it has incurred significantly bearish momentum over the past few weeks after retracing all of the gains that were incurred in late-October when it surged to highs of $10,600.
Although there is still a month left in 2019, the present lack of any bullish momentum likely signals that BTC will end the year on a slightly bearish note.
There is still time, however, for bulls to step up and push the crypto higher, as the last few weeks of the year are historically a volatile time for BTC and the aggregated crypto markets.
In 2017, December was a wild month in which Bitcoin hit highs of nearly-$20,000 before retracing and fueling a massive bull rally amongst altcoins.
In the final months of 2018, Bitcoin incurred a significant amount of selling pressure that led it to drop as low as $3,200, which was subsequently followed by a bout of decent upwards momentum throughout the first half of 2019.
Analyst: BTC Needs to Break Above $8,000 for End of Year Rally to Ensue
Mati Greenspan, the founder of Quantum Economics, spoke about this in a recent note, explaining that a failure for BTC to decisively move above $8,000 could mean that it will end the year on a bearish note, but also that a break above this level could potentially lead to a surge up to $14,000.
“My conviction level has come down quite a bit. Particularly, as the continuation and strong breakout has yet to develop… Still, nothing changes sentiment like price and a strong push above $8,000 at this point could very easily pave the way to the recent highs near $14,000,” he explained.
How Bitcoin ends the year will likely offer significant insight into how positive 2020 will be for BTC and the aggregated crypto markets, with any further near-term bearishness potentially signaling that the ongoing crypto winter will extend significantly further.