Bitcoin price analysis: BTC/USD goes below $9,000, but Fundstrat believes that long-term holders don't have to worry
|- BTC bulls defeated once again, $9,000 under threat.
- Fundstrat experts predict that Bitcoin price will grow to $36,000 by 2019 year end
Bitcoin dropped back below $9,000 without any particular reason, except the technical factors as the recovery failed on approach to $9,400 resistance without convincing drivers to support nascent bullish momentum. BTC/USD is trading at $8,935, 1.5% lower since the start of the day. The coin is 3.8% higher than 24 hours before.
Bitcoin price may fly as high as $64,000 due to growing mining activity, which is roughly five times from current BTC/USD exchange rate, according to Fundstrat analysts. Experts believe that processing power needed to solve a mathematical puzzle, known as hash power will increase 350% in 2019.
"We believe the current path of hash power growth supports a BTC price of about $36,000 by 2019 year end, with a $20,000-$64,000 range," Sam Doctor, head of data science research at Fundstrat, said in a report.
Miners are likely to hold bitcoin when its price falls to break-even for operating costs, and sell it when the price is growing to take profit, the expert explains.
Bitcoin technical picture
On the longer-term scale, Bitcoin's fate hinges on $9,000. This level has been tested several times and each time Bitcoin bounced back. A sustainable movement below will trigger extensive sell-off as there is a cluster of protective orders placed right below the support area. In that case, $8,400 will become the initial bearish target, created by 38.2% Fibo retracement of the downside movement from $11,567 to $6,483.
BTC/USD, the daily chart
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