Bitcoin prices fell to nearly $ 17,600 today, falling to their lowest since late November before bouncing back.
Since experiencing this volatility, the digital currency has been trading primarily within a relatively tight range between $ 18,000 and $ 18,500, CoinDesk figures show.
Following this downside, and the subsequent recovery, several market observers helped shed some light on the cryptocurrency’s position.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, stressed that “although the price has dropped below $ 18,000, the bounce back above this level means the support is still valid.”
He predicted that $ 18,000 in the near term will provide support, while $ 18,500 will be “immediate resistance.”
Ilia Maksimenka, CEO and founder of global payment platform PlasmaPay, also weighed in.
“Bitcoin was unable to move significantly past its record high in December 2017,” he said.
“The bears stepped in to prevent the price from breaking above the $ 20,000 psychological price point and were able to push it back below $ 18,000, tagging the Fibonacci level 61.8% of the previous big hound low,” said Maksimenka.
“The bulls stepped in quickly to buy Bitcoin at this price and keep the price within the defined parallel channel,” he said.
Focusing on key price levels, Maksimenka offered some forecasts.
“If $ 17,600 is protected and respected, then Elliott’s bullish wave count shows upward movement to prove the $ 21,000 resistance level,” he said.
“If this level is not defended, I expect the bears to push it all the way back down to $ 16,000, where the median line of the playing field should act as support.”
Jason Lau, COO of cryptocurrency exchange OKCoin, also performed technical analysis to offer a price prediction for the digital currency.
Lau emphasized that he is paying close attention to bitcoin’s monthly trend, and that if the cryptocurrency closes below this line, he will “expect a fall to $ 16,000s range.”
Disclosure: I own a small amount of bitcoin, bitcoin cash, litecoin, ether and EOS.