Delphi Digital has issued a new report suggesting why the bitcoin price could potentially spike to new heights over the coming months. At the same time, the report also acknowledges some of the bearish trends that could possibly take precedence. If this were to occur, bitcoin could ultimately fall to new lows.
Delphi Digital Is Split When It Comes to BTC
At press time, everyone’s favorite cryptocurrency is trading for over $8,200, thereby showing slight improvement over the past few days. The report says that everyone who’s enthusiastic about the asset and in it for the long haul should be pleased with the sudden drop in price considering they now have a chance to purchase more units for a much smaller amount.
The report explains:
[Those] with long-term conviction in this asset class should welcome this pullback with open arms as it presents an opportunity to buy or add to existing positions at lower prices.
For the most part, the document suggests that bitcoin has managed to recover somewhat since its drop into the $7,000 range late last week. It is estimated that the currency has risen by as much as 11 percent since this fall occurred.
Continuing, the report also quotes data from crypto prime dealer SFOX in that the bitcoin price tends to spike during the holiday season (i.e. Thanksgiving, Christmas, etc.) People tend to be more intrigued by BTC during this time and don’t want to miss out on possible end-of-the-year gains, which is why they often make more purchases during this time and the price tends to rise somewhat.
This makes sense in a way. After all, it was in December 2017 when the bitcoin price jumped to its all-time high of nearly $20,000. Prior to that, Coinbase – the popular U.S.-based crypto exchange – added more than 100,000 accounts to its platform, and the currency seemed to be at its highest position.
Unfortunately, as we also remember, it was in November 2018 when bitcoin’s price tanked to new lows, falling into the mid-$3,000 range after it had been traversing through $5,000 and $6,000 for months before. While this drop can potentially be blamed on the bitcoin cash hard fork that had occurred prior, the price still fell in dramatic fashion. Thus, SFOX’s data must be taken with a grain of salt.
The primary trouble with bitcoin’s present situation is that the price drop isn’t necessarily over. Delphi Digital suggests that in a worst-case scenario, bitcoin could fall even further within the next 30 days.
Why BTC May Fall Again
The report suggests:
Bitcoin has rebounded slightly off in its intra-week lows, but we remain a bit cautious in the short term given this week’s technical breakdown.
Recently, bitcoin fell below its 200-day moving average. In the past, this has typically been followed by negative price behavior.