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article imageOp-Ed: Bitcoin again falls below $11,000 in spite of bullish prediction

By Ken Hanly     Feb 21, 2018 in Technology
A recent article on Coindesk suggests that with bitcoin above $11,000 and the total market cap of cryptocurrencies approaching $500 billion that the cap could move even higher. But just within a few hours, bitcoin has drifted well below the $11,000 level.
Bitcoin's ups and downs
The Coindesk article was posted today, February 21st, at 12:05 UTC.
At that time, the market value of all cryptocoins was around $480 billion. This is a rise of 43.20 percent from its February 6th low of just $276 billion. Over the last three days, the range has been from $475 billion to $520 billion.
The article notes that in just the last 24 hours the total market cap of cryptocoins had dropped by $32 billion. The top ten cryptocoins all suffered losses. Bitcoin too suffered an overnight drop of more than $1,000, hitting a low of $10,948.20 but recovering to $11,143 when the article was written.
Yet the article predicts: "However, bitcoin, the world's largest cryptocurrency looks set to rally soon, thus the probability of total value of all cryptocurrencies breaching the recent range on the higher side are good. " The article predicts that bitcoin (BTC) is set to test the long term inflection point at $12,300 soon. Bitcoin was just second from the last losers among the top ten cryptocoins in the last 24 hours.
Bitcoin price drops this afternoon
About an hour after the Coindesk article was posted, bitcoin's price began to drop. The price opened today at $11,228 but reached a low of just $10,244 later.
At about 23:22 UTC the price was just around $10,450, a decline of over 7 percent on the day.
It looks as if bitcoin is not set to test any new highs but is headed back down, perhaps to test new lows.
Chart analysis shows bitcoin to test $12,000 level
A second Coindesk article also argues that bitcoin is poised to test the $12,000 level. The article uses a chart and technical analysis to establish this conclusion. However the article does note that some investors believe that bitcoin is still in a bear market.
The recent rise from the low of below $6,000 is regarded as a "corrective rally" within a larger downtrend.
The article notes: "The view has merit, given the cryptocurrency is still trading well below the descending trendline drawn from the Dec. 17 high and Jan. 6 high. However, short-term momentum studies favor upside in BTC prices."
It remains to be seen which if either of these scenarios is correct but the most recent price moves suggests that the bitcoin price is trending lower for the short term at least. It remains to be seen as well whether cryptocoins will establish a market cap base.
This opinion article was written by an independent writer. The opinions and views expressed herein are those of the author and are not necessarily intended to reflect those of DigitalJournal.com
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