Analyst Claims Bitcoin to Test $2,970 is Likely in the Short-Term

The cryptocurrency markets have held steady today and have given investors a welcome reprieve from what seems like a constant downturn, with the overall markets trading sideways after experiencing nearly two weeks of consistent price plunges.

At the time of writing, Bitcoin is trading down 1.1% at its current price of $3,730, trading choppily over the past 24-hours between a range of approximately $3,640 and $3,800. Bitcoin is currently trading down 43% from its one-month highs of $6,600, and one analyst believes that another short-term downwards move is imminent.

While speaking to MarketWatch about the short-term future of the market, Nick Cawley, a markets analyst at Daily FX, said a move to $2,970 is very likely, which could result in a temporary bounce.

“After dropping in excess of 40% in the last two weeks, with very little news to drive the move, Bitcoin is trying to build a base around the $3,500 – $3,700 level in the last three days. While the longer-term chart setup remains negative, with a test of $2,970 likely—in the short-term the charts are showing the cryptocurrency heavily in oversold territory, which may produce a relief bounce higher,” he explained, citing the RSI index.

Related Reading: Winter Cometh: Bitcoin to Equal Four Year Record Dropping Four Months in a Row

Bitcoin Could Sit Under $5,000 for a While

As Bitcoin rests near its 2018 lows, some analysts are predicting that it could be months longer before the markets see Bitcoin’s price rise above $5,000.

Vinny Lingham, the CEO of blockchain-based identity service, Civic, recently told CNBC that a crypto winter is coming, during which time the cryptocurrency markets will likely be trapped at their relatively low prices.

“I think it stays in the range between $3,000 to $5,000 at least for three to six months. I don’t think we break through the support level of $3,000 just yet. I think there is a lot of buying in the short-term around that mark. If we don’t get out of the crypto bear market cycle in the next three or six months, the $3,000 level could go,” Lingham explained.

Altcoins Stable Near 2018 Lows

Many altcoins are currently sitting just off of their recently-set 2018 lows, with major altcoins staying tied to the price movements of Bitcoin.

At the time of writing, XRP is trading down 2% at its current price of $0.35 and is trading down 36% from its one-month highs of approximately $0.55. Despite trading down significantly over the past month, XRP has outperformed Bitcoin and has solidified its lead over ETH as the number two cryptocurrency by market cap.

Ethereum has had a rough time over the past month, and many attribute this to the amount of initial coin offering (ICO) projects that are selling off their ETH holdings in order to better secure their finances. At the time of writing, ETH is trading down just over 2% at its current price of $106 and is slightly off if its 2018 low of just under $100.

It is unclear whether or not investors are ready to adhere to the old adage of buying while there is blood in the streets, or if further losses are in fact necessary in order for investors to jump back into the markets.

Featured image from Shutterstock.

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