Bitcoin's 14-month low within reach. No need to worry as of yet?
|- BTC/USD is hovering around $3,800 amid quiet Asian hours.
- Danny Scott from CoinCorner says no need to worry.
Bitcoin is hovering at $3,800, off Monday's low reached at $3,748. The coin is moving within a bearish trend as a break below $3,900 congestion area darkens the short-term picture. The first digital coin has lost 3.4% in recent 24 hours amid growing bearish sentiments.
Bitcoin lived through the worst month since August 2011, losing nearly 40% of its value in November. While there are a lot of talks about Bitcoin being dead or moving to zero, not all and everyone is panic-stricken. The industry veterans that stands at the origin of cryptocurrencies believe that this collapse is temporary as large-scale price fluctuations are typical to nascent industry, overwhelmed with extreme excitement.
Thus, Danny Scott, the CEO, and co-founder of cryptocurrency exchange CoinCorner says that we need to wait for the storm to pass.
“If we look back over bitcoin’s short 10-year history, it has experienced many price fluctuations — something that is to be expected given that the industry is still very young. There have been many sizeable price movements over the years which have typically gone unnoticed by anyone except those within the industry. For example, in 2013 we saw the price drop 49.88% in just 14 days, which is a bigger drop than the one we have experienced over these last two weeks,” he explained.
Bitcoin's technical picture
From the short-term point of view, BTC/USD is capped by $3,900 (former support). The next upside target lies with psychological $4,000, strengthened by a confluence of 1-hour SMA levels and SMA50 (4-hour). Once this area is cleared, the upside may be extended towards $4,300 (SMA100, 4-hour).
On the downside, the nearest resistance lies with Monday's low at $3,748. Once below, the sell-off may take the price towards $3,500.
BTC/USD, 1-hour chart
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