BTCUSD - Rallies Higher off Much Needed Support from $3300

It now looks like some considerable effort will be required to get the Bitcoin price back to within reach of the significant level of $6500, although it may be able to remain within touch should the support at $3300 hold strong. It had made several attempts to break higher through the resistance at $6500 however it was sold off on every occasion. In early September Bitcoin fell very sharply from a one month high near $7500 and quickly settled under $6500. The $6500 level has firmly established itself as a level of significance however this is obviously now a considerable distance away and new significant levels will need to be identified.

In the second half of July, BTCUSD enjoyed a strong surge higher moving through the key $6500 level and to the two month high. May and June saw Bitcoin fall strongly losing almost 40% of its value in that short period, from the peak near $10000 in early May to trading levels just below $6500. Throughout April, BTCUSD again rallied well off support at $6500 to approaching $10000, however these gains have been few and far between in 2018.

Despite the healthy rally in the last week, the price drop for Bitcoin has continued into December, after a miserable November, which saw Bitcoin drop 37% which is it worst drop since April 2011, when it dropped 39%.  Despite the falls and the scepticism surrounding Bitcoin, there are still many people who believe in the technology and that the adoption of digital tokens will revolutionize the financial services industry.  However what remains a mystery is how the technology will replace potentially outdated systems and how long the technology revolution will take.  Founder of cryptocurrency merchant bank Galaxy Digital Holdings Mike Novogratz said that he does not expect the Bitcoin price to decline much further.  Despite the recent slump in the market, Novogratz projected that the Bitcoin price will stay between $3,000 and $6,000 in the foreseeable future.  Erik Finman, who became a teenage bitcoin millionaire has warned that the long-term outlook is bleak.  “Bitcoin is dead, it’s too fragmented, there’s tons of infighting I just don’t think it will last,” Finman said.  “It may have a bull market or two left in it, but long-term, its dead.”