Bitcoin prices were on red for another week, wiping out 14.7% of its value. The Bitcoin was on negative territory from the very beginning of the week, reaching 3,284.79 USD low on December 7th. December was a very difficult period for the most expensive virtual currency on the market, as the price dropped by 8% on the first day of the month.
On Friday the Bitcoin fell by 11.6% in the past 24 hours, falling to a price of 3,412 USD. Traditionally, the decline of Bitcoin dragged the other cryptocurrencies, as Ripple decreased by 10.55% to 0.304 USD, while Ethereum dropped nearly 16% to 87.02 USD. The total market capitalization of the cryptocurrencies fell to 108.1 billion USD.
The market is generally driven by bearish sentiment. As the market moves away from retail investors, it depends largely on group moods that can cause big deviations. Without positive moves in the near future, the decreases may continue in 2019.
The co-founder of the crypto-exchange BTCC, based in Hong Kong, is making a bold prognosis. According to Bobby Lee, Bitcoin will finally meet the bottom next month at around 2,500 USD, but also suggested a peak of 333,000 USD.
“If history repeats perfectly, then the current bear market for Bitcoin would bottom out at 2,500 USD next month, in Jan 2019. And then the next rally would start in late 2020, peak out in Dec 2021 at 333,000 USD, and then crash back down to 41,000 USD in Jan 2023”, wrote Bobby Lee in Twitter.
He based his calculations on the cost of a Bitcoin in December 2013, when the cryptocurrency hit the top of about 1,200 USD. Over the next 13 months, Bitcoin declined by about 87.5%, reaching roughly 150 USD in January 2015. Since then, Bitcoin has boosted and jumped to nearly 20,000 USD in December 2017.
A drop of 87.5% from 20,000 USD puts the value of the currency to 2,500 USD.
Market recovered during the weekend
Over the last 24 hours, the crypto market has added 5 billion USD to its valuation, demonstrating a slight recovery from 106 billion USD to 111 billion USD. The cryptocurrencies recovered from the weekly-low reached on Friday and Bitcoin jumped by 5.5%, Ripple by 4.44% and Ethereum by 7%.
At the end of the week the Bitcoin is traded at 3,585 USD, Ripple at 0.314 USD and Ethereum at 95.63 USD.
There is a significant bearish trend line formed with resistance at 3,630 USD on the 4-hour chart of the BTC/USD pair. The pair is currently consolidating losses above 3,200 USD with resistances near 3,500 USD and 3,600 USD.
Ethereum hard fork
Ethereum developers decided to release Constantinople’s hard fork update after the platform’s block 7,080,000, but this could happen if members of the Ethereum community vote for the update. The decision to initiate the code changes that were included in the modernization was made during the two-week meeting between the main developers of Ethereum this week.
If the Ethereum community approves the modifications, the code will be added when it reaches block 7,080,000.
The Parity Ethereum Customer Service estimated that Constantinople would be released sometime between January 14th and 18th. The upgrade of the Go-Ethereum client software would include an option to postpone the upgrade in case it had trouble activating the code base modifications.
As announced in September, the upgrade was scheduled for October but was postponed until November. However, due to various problems with the proposed code modifications during the test phase, the developers decided to activate Constantinople by the end of January 2019. So now it seems that the Ethereum block might be able to accept the update a few weeks later, as it is now scheduled for mid-January 2019.