Bitcoin has taken a big hit the last few weeks and the bears are in control of the market for now. From a technical standpoint, Bitcoin is oversold but the fundamentals could push it even lower. Will BTC ever recover or will it become totally worthless? Let’s find out!
The Current Situation
Bitcoin and the whole cryptocurrency market is definitely suffering at the moment. BTC, currently standing at around 3,500$ at the time of writing is likely to test the next key support area which is 3,000$. Right now, we are way below the 18 average of lows on the long term time frame (daily and weekly) and the RSI is still standing at around 30 on both these time frames as well.
These are indicators that will traditionally be a signal of a great buying opportunity but the fundamentals are playing a big role right now and there is no confidence in the market. Therefore the prices are being pushed down as many investors sell their positions as soon as a small rally upwards is coming.
The Next Move
We believe that a lot of of the smart money will be tempted to buy at 3,000$ as it is a strong technical but also psychological level. However, if the volume is not strong enough, the trend might not last and the sell-off could go on until 1,000$.
What the market needs is big money from institutional investors to bring momentum, change the trend anf start a new bull run. This initinal push could restore faith in the market and re-attract retail investors to come back.
As we stated many times here, Bitcoin is still in its infancy and mass adoption is still far away. While all the talks are about the bear market, a lof of development is being done with the implementation of the Lightning Network for instance which will make BTC and other cryptos usuable at a very big scale.
There is no doubt in our minds that the blockchain technology is here to say and will transform our lives in the future and for that reason alone, Bitcoin cannot be worthless.