BY Fintan Ng - November 21, 2018
Further price declines expected for bitcoin
Capitulation or not, sentiments remains fragile for the crypto markets, as with the traditional capital markets, where investors continued to sell down their technology stock holdings.
The more cautious among analysts are warning against any entry into the crypto markets as more price declines are expected, noting that the increase in volume as investors offloading their crypto holdings.
Hedging positions and reducing exposure has been what most analysts have advised since last week and the strategy continues to hold this week given further price declines.
One analyst is expecting bitcoin to find support at the US$3,400 levels should the price drop below US$4,000.
Another analyst believes that the crypto markets have not capitulated yet on a technical basis. “Need to see a bounce before we can confirm that the market has capitulated and bears go away,” he says.
They say that while recent price movements have been depressing, it is still important to look at how the space is evolving, especially with the entrance of institutional participants such as Bakkt, Fidelity and Ameritrade.
At press time, aggregate bitcoin prices on CoinMarketCap has contracted by 11.19% to US$4,351.36 over a 24-hour period.
XRP fell 14.14% to 41.90US cents and ethereum slipped 15.43% to US$126.23. Tether was 0.35% lower at 97.76 US cents following news that US regulators are investigating executives of the startup behind the stablecoin for possible market manipulation.