Bitcoin

Prominent Trader Expects Bitcoin to Plunge Below $3,000 as Crypto Bear Market Persists

It has become increasingly apparent to crypto and Bitcoin investors alike that the 2018 bear market will persist throughout 2019, despite most investors previously thinking that the markets would start afresh in the new year.

One prominent trader is now predicting that Bitcoin will drop below $ 3,000 in the near future as the markets continue expressing weakness.

Resistance Around $ 4,000 Will Lead Bitcoin to Drop Further

In a recent interview with CNBC, Anthony Grisanti, a prominent futures trader, explained that the price drop that he sees as being imminent will be fueled by traders liquidating their positions as Bitcoin fails to break above its resistance levels that exist around $ 4,000.

“I’m looking for a move down to $ 3,000, which would represent a real weakness in this market… It could be the driver that gets people to bail out of this and push it even lower,” Grisanti explained.

He further explained that the volatility Bitcoin and the general crypto markets have seen over the past week is directly connected to traders liquidating their positions every time the price starts running, which leads to choppy trading.

“Every time this market does run, people are liquidating their positions… Whether or not they’re liquidating outright or the futures, they are liquidating. So I’m looking to sell this. At $ 3,800 is where I want to sell it. There’s some resistance around $ 4,000, $ 4,100,” he said.

Other Analysts Believe Bitcoin Has Support Around $ 3,000

Although Grisanti believes that Bitcoin will fall below $ 3,000 in the near future, most analysts think that there will be a significant amount of buying pressure around this price level.

While speaking about the large range that Bitcoin is currently caught in, Mati Greenspan, the senior market analyst at eToro, said that the crypto will likely trade between $ 3,000 and $ 5,000, with support existing at the former price, and resistance at the latter price.

“If we zoom out, and as we’ve been discussing for a few weeks now, we can see that the overall range that we’re in is from $ 3,000 to $ 5,000 per coin… So we’re now at the halfway mark in the middle of the broader range,” Greenspan explained.

Vinny Lingham, the CEO of Civic, echoed Greenspan’s sentiment regarding Bitcoin’s current range during a recent interview with Cheddar.

“The reality is it’ll probably trade sideways between $ 3,000 and $ 5,000 for another month or two while it’s trying to find which way to go… When it finds that direction, there’ll be a breakout or a breakdown,” he said.

Featured image from Shutterstock.

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