2018 was definitely not the year of Bitcoin, as it has lost nearly 81% of its market cap. The fall was quite heartbreaking for investors especially because of the 2017 all-time high nearing $20,000. The high-prices towards the end of 2017, made everyone go into a frenzy with their price predictions for the coming year.
Some claimed it would cross 30K mark, some said it might even triple its highest price point. But when it was all said and done all predictions fell flat, and prices came plunging down, nearing all-time lows. The setback of 2018 taught a very important lesson to investors, never overshoot your expectations to hide your optimism.
Thus, entering into 2019, investors only hoped for the market to stabilize and regain some momentum for the long run. However, looking at the current bearish trends and a major attack on the Ethereum Classic network, the Bitcoin prices have started to degrade further.
Bitcoin which was facing a huge resistance level at the $4,000 mark, experienced a wave of Bear attack plunging it prices to as low as $3660, mowing down its market cap by 11% in a single day. At the time of writing Bitcoin was trading at $3686, and analysts believe, if any other Bearsih trends sweep the market, Bitcoin might touch last-December lows of $3200.
What is more probable, Bitcoin at 2K or 5K?
As we were discussing earlier, the Bitcoin prices are very volatile and losses in 2018 are a clear indicator, with its current market rate and prediction, the investors would feel fortunate if the Bitcoin crosses the $4,000 upper resistance level.
In absence of any real-world entity backing the digital asset, it’s really hard to predict the nature of prices, whether bulls would be stronger or Bears would take control. However, Bitcoin should first look to breach the upper resistance level of $4k and a price prediction of $5,000 would be really optimistic.
If the dumping continues, it would be hard for the pioneer of cryptocurrencies to maintain a lower resistance level of $3,400 and a downfall from here can push its prices further below.
The question should not be whether Bitcoin would reach the 5K mark first or plunge down to lows of 2k. Instead, people of the community should be more focused on lowering the volatile factor. The volatile factor can only be negated with much wider adoption and acceptance.
Although the number of merchants and vendors accepting Bitcoin as a mode of payment has increased significantly, other factors such as scalability issues and high-transaction time is still a reason of concern for many. The only solution for the problem is a collaboration between major financial institutions and Banks.