There aren't any factors that prevent Bitcoin from dropping to 3000 dollars or even below it.
During 2017, Bitcoin jumped from 900 dollars to 20 000 dollars like it was nothing. It blew through every resistance level. That fact means that there is not any real strong support as we've noticed during this devastating bear market. So the bottom could be anywhere below 3000 dollars.
Short term fundamentals are looking bad as well. A lot of crypto projects are having funding problems. They need to fire people in order to survive like Steemit. The amount of funding through ICOs have dropped to catastrophic levels. Buying volume has completely vanished. Everyday you're reading about scam coins. People being ripped off. Regulations. Taxes. To summarize, people are losing interest.
I constantly hear talk about institutional money entering the market or are about to enter. I have been hearing this during the entire year. Where are they? No big company is crazy enough to invest directly into cryptocurrency. Not yet though.
I'm also seeing technical analysis based on multi-year old trendlines. These lines won't break they say. Bitcoin will pump! Believe me, trendlines don't last forever. Sometimes they hold, sometimes they break and form a new trend. Be aware of this.
Ask yourself. Is it realistic to think Bitcoin will pump right after we found the bottom? Will we go the moon at a fast pace like in 2017? I don't think so. The market is not the same one as in 2017. Maybe we are going to see a long accumulation period? Who knows.
After four days of Bitcoin Cash (BCH) dominating the popularity of the market, Bitcoin prices jumped dramatically in just 24 hours, and recorded the highest all-time price at the level of $ 3,212.
Previously, the price of Bitcoin had also touched the price of $ 3,000 when market optimism was encouraged with the emergence of an activation solution to increase the smooth transaction by the Bitcoin Core developer team and the Segregated Witness (SegWit) solution. However, shortly thereafter, several large markets experienced a correction which caused the price of Bitcoin to fall to the level of $ 1,900 and stabilized at the price of $ 2,500.
Why does SegWit have a big effect on the price of Bitcoin and push the price of Bitcoin to go up?
Debates between the mining community and Bitcoin developers regarding SegWit activation have delayed scaling activity in Bitcoin for years. Once there was an attempt to overcome the scale of the network presented at the Hong Kong roundtable consensus event but it also failed to reach an agreement.
Without us knowing that SegWit activation is a big milestone for Bitcoin in scaling problems, why? Because Bitcoin, which has been operating for many years in a block size limit of 1MB set by Bitcoin creator Satoshi Nakamoto in 2009, has increased.
SegWit activation also builds a necessary infrastructure such as Lightning Network. Implementation of Lightning Network and other solutions including TumbleBit will have an effect on increasing the Bitcoin network by activating micropayment and implementing an application that was previously impossible.
Another driving factor is the increasing demand from institutional investors. This week alone, CBOE, the largest option exchange in the US has announced that it will integrate the Bitcoin contract and options into its trading platform by cooperating with the Gemini exchange market.
Institutional investors can only play major role to uplift the price of bitcoin. Bitcoin price is a game of supply and demand . When more and more money comes into the market , bitcoin price will definately go higher and prevent breaking $3000 levels.
The main factors that can boost the price of bitcoin are :
• Proper regulation of crypto currencies or bitcoin will play major role to create trust on it, more and more institutions and intitutional investors will flow over it
• ETF approvals will definately play major role and it can boost the bitcoin prices to the moon
• Bigger stock exchanges Bakkt and Fidelity can bring trillions of dollars into crypto space which will let the btc prices to the moon
• Lightning network implementation will also boost the bitcoin prices making it faster and transaction cheper .
Absolutely no reason it can not go below $3000. Bitcoin can change value to the tune of thousands of dollars in a virtual blink of an eye. Some of those are in a good direction but as for the last year they have been in a negative direction.