Bitcoin Drops to $7100 even with Positive Fundamentals – Is $6500 Incoming?

By Nivesh Rustgi
Published December 4, 2019 Updated December 4, 2019
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Bitcoin Drops to $7100 even with Positive Fundamentals – Is $6500 Incoming?

By Nivesh Rustgi
Published December 4, 2019 Updated December 4, 2019
  • Donald Trump, the President of the US, decides to postpone the Phase 1 trade deals with China along with threats of increasing tariffs.
  • Bitcoin [BTC] dropped to test lows at $7100 on Tuesday, despite positive cues from global macro.
  • Gold, on the other hand, records gains as expected from such an event.

The Bitcoin [BTC] investment rhetoric this year began with the ‘safe haven’ dialect. The trade war between the US and China heightened during Q2. Consequently, Bitcoin and gold, both regained over 150% and  18%, respectively.

gold usd bitcoin
Gold/USD 1-Day Chart (TradingView)
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The downside post of September is also correlated with gold. However, the current macro structure will threaten a massive decoupling of these factors. On Tuesday, Gold rose by 1.05% after Trump’s made the announcement.

If the stock market and global trade continue to see adversities and Bitcoin [BTC] remains bearish, the store of value argument will be questioned.

Moreover, the halving speculation is still ongoing with the event due in May. Bitcoin investor, Alistar Milne, noted,

Please tell me again how ~$45million / week of unsatisfied demand won’t move the price when Bitcoin’s halving occurs …

He is referring to the compensation in the selling pressure from miners, as half will reduce Bitcoin rewards in May 2020. Currently, about $13-15 million is needed to balance the number of daily rewards in Bitcoin [BTC].

The market usually discounts the value of the gains in the future. However, this time around, it seems to be waiting for the event to occur.

Bitcoin [BTC]: A look at the charts

Moreover, according to leading analysts, the trend is still bearish. Bitcoin [BTC] price is close to its lows as it ranges between $7100-$7400. Crypto trader, XC tweeted,

Leaning bear here with our inability to print a HH (Higher High). Don’t see this support holding for much longer at the current rate. $BTC

btcusd 1 day chart
BTC/USD 1-Day Chart on Bitstamp (TradingView)

A bullish move above weekly close at $7800 would be the next bullish cue. However, the volume is also considerably weaker than previous bull cycles. A break to the downside could lead the price to swing lows at $6515.

The price of Bitcoin [BTC] at 3: 45 hours UTC on 4th December 2019 is $7150.

Do you think Bitcoin’s technical forces are stronger than fundamental events? Please share your views with us. 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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