Why did Bitcoin hit the bottom on 6 December?

This has been a melancholic working week for the entire market. On Thursday, everything, not just the cryptocurrencies, plunged. The European markets suffered the worst day since February 2018. In the opening...

This has been a melancholic working week for the entire market. On Thursday, everything, not just the cryptocurrencies, plunged.

The European markets suffered the worst day since February 2018. In the opening trading hours, the US S&P500 dived by 3% and NASDAQ by 3.8%.

Brent crude price was below $60.00. Some analysts call 2018 that started on a pretty good note, the worst one for investors since 1993, others — sinсe 1972 and still others — since actually 1901.

And speaking about Bitcoin: the whole week the price followed our scenario gradually going down.

1-hour chart

Today, on 7 December 2018, BITCOIN has dropped to $3,368 — its new yearly minimum and is consolidating at the time of writing. The bulls are trying to push the price up to $3,500 but all indicators are against them. The moving averages are above the price on the chart and directed down, The MACD indicator is in the sell zone but showing signs of a reversal.

The next target for the bears is the $3,000 level — the decline stopped at this level on 15 September last year.

On the one-day chart the $3,000 level acts as a strong support; there is only today’s minimum of $3,368 above it. The moving averages signal a continuation of the descending movement. The MACD indicator is in the sell zone, but, like in the 1-hour timeframe, showing signs of a reversal.

Speaking about the news landscape: it is classical for such spills. Yesterday, it became known that the US Department of Homeland Security (DHS) intends to track transactions in anonymous coins (like Zcash and Monero).

On December 19, the Department is to announce a decision to develop measures aimed at combating anonymous transactions.

However, we should not count on hearing the answer precisely on 19 December, given the saga of Bitcoin futures. Pushing the decision deadline on VanEck and SolidX bitcoin BTF to 27 February 2019 became another ’ideal’ news to complete the already gloomy picture. Under the rules, a decision cannot be delayed any further, stated the SEC notice. Against this backdrop, Bitcoin price hit the 2018 minimum

Our recommendation for today: don’t trade and wait outside the market. The bears’ dream of the $3,000 level is highly likely to come true in December.

At that, we also have to mention a drop in market capitalisation to $108, 187, 752, 536.

We wish all of you profits! Despite the overall decline, the fever in the market will be over.

Enjoy your weekend!