Bleak Outlook as Analysts Predict Bitcoin Can Fall Under $6K

Bitcoin price is not looking good at the moment at all following a swift slump recorded on the 22^nd of November. The digital currency tumbled through various sections without any encouraging sign of positive improvement. It is becoming more critical for the currency, highlighting the same challenge it has been facing for almost a decade now.

China May Be Involved

Some analysts tried to explain the slump saying it might have been triggered by scary news from Chinese media outlets. In China, reports are all over the place concerning the introduction of more regulations following a stringent clampdown on digital currencies by Beijing. This report also stressed the fact that the government was not interested in promoting Bitcoin and other digital currencies. Their focus is on the promotion of blockchain technology. The same media release stated that initial coin offerings are against the law and more regulatory measures were put in place against foreign exchanges.

Analysts and traders in the cryptocurrency niche like @CryptoWelson are of the opinion that the currency is about to dip into the $6000 price zone.

#Bitcoin looks primed for bottoming out within 2019. After rejecting the resistance I discussed in my earlier calls (above 10k), we've seen the markets drop a lot.

We're now entering the 6K range, which I am confident in the bottom! Make sure to accumulate for the next bull run. pic.twitter.com/Lqtuzw1Uwd

— Welson ???? (@CryptoWelson) November 22, 2019

When that happens, a reversal may be initiated. Whatever the case, it appears that Bitcoin is going to bottom out before this year runs out. He is advising that stakeholders should accumulate in preparation for the next bull run. Whether this is really going to cause a reversal in the trend of the price or push a decrease remains to be seen as analysts keep debating.

Bitcoin Volume Trend

In taking a closer look at the Bitcoin volume profile, it is clear that most of the trading was actually done close to the $6,500 mark. This was from the May to October 2018 period. It was before the breakdown that sent the price tumbling to a shocking $3,200.

But this week is different. There is a clear bearish development that is edging away remarkable support received before now. The bearish run has led many analysts to take a second look at the trend.

By also observing the logarithmic support line, a similar trend can be noticed. The support line was initiated in 2011 and the value has been impacted several times. As it is now, it stands at $6,000. But it is on the increase and it is expected to maintain that trend with time. Hence, if the price were to maintain until December, it is expected that it is going to pass the $6,500 mark. This is the upper limit of the support area that was pointed to earlier.

@davthewave is another analyst who also makes use of the same thinking. He has already declared that Bitcoin price is considered to be in the outlined buy region.

Blood in the streets, red in the buy zone, now is the time to buy… if you have any dry powder that is… pic.twitter.com/mfFLcC1mcV

— dave the wave (@davthewave) November 22, 2019

On his own part, he is utilizing a descending channel to keep a tab on things. The region of the buy zone has been demarcated from $5,8000 to $6,800 and it covers all relating to the long-term support line and the lower ends of the descending channel.