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No Santa Claus Rally as Crypto Analysts Remain Extremely Bearish on Bitcoin

Summary:
Bitcoin is likely to end 2019 on a bearish tone. Analysts share their year-end predictions and it appears that there will be no Christmas rally. With bitcoin flirting with ,800 support, we might see a painful leg down soon. Bitcoin bulls might be sitting out the last month of 2019. While December has been kind to the top cryptocurrency since 2014, it appears that this year will be different. Analysts don’t see bitcoin bulls staging a coup in the next month or so. It appears that bitcoin has more downside potential. | Source: TwitterDecember will likely be a cold bear winter for the dominant cryptocurrency. Of course, the forecast may change if bitcoin recovers certain key levels. For now, a slow bleed appears to be on the horizon. Bears Must Kill ,800 to Maintain Their Momentum

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  • Bitcoin is likely to end 2019 on a bearish tone.
  • Analysts share their year-end predictions and it appears that there will be no Christmas rally.
  • With bitcoin flirting with $6,800 support, we might see a painful leg down soon.

Bitcoin bulls might be sitting out the last month of 2019. While December has been kind to the top cryptocurrency since 2014, it appears that this year will be different. Analysts don’t see bitcoin bulls staging a coup in the next month or so.

No Santa Claus Rally as Crypto Analysts Remain Extremely Bearish on Bitcoin
It appears that bitcoin has more downside potential. | Source: Twitter

December will likely be a cold bear winter for the dominant cryptocurrency. Of course, the forecast may change if bitcoin recovers certain key levels. For now, a slow bleed appears to be on the horizon.

Bears Must Kill $6,800 to Maintain Their Momentum

There’s no doubt that bitcoin is in bear territory. The coin is down 50% from its 2019 high of $13,880. Although there were moments when the cryptocurrency appeared to be regaining its bullish form, every rally was met by tremendous selling.

The inability of buyers to push prices higher is why many analysts doubt that a Santa Claus rally is just around the corner.

Clem Chambers, CEO of ADVFN and Online Blockchain Plc, doesn’t see bitcoin making a sudden reversal to $10,000 anytime soon. He told CCN,

Can [bitcoin] hit $10,000 this year? Yes, but will it? Probably not. Can it go to $5000? Yes and this looks more likely than $10,000. Stabilization at around $6000 seems the most likely outcome for now.

Other analysts share his sentiment. They also believe that bitcoin will likely breach support of $6,500. For instance, Todd Butterfield, owner of the Wyckoff Stock Market Institute, said,

I think if $6,800 breaks we could see another low below $6,500 before the run to new all-time high.

Nick Hellman, vice president of LearnCrypto.io, shares the exact same view. He told CCN,

Indicators are pointing to one more low below $6,500 if $6,800 cant hold. This selloff will then be followed by an explosive move higher.

Global Economic Factors to Give Bears More Ammunition

On top of bearish technical signals, the current macro environment does not look conducive for the top cryptocurrency’s growth. Uncertainties such as the unending trade war talks and impeachment inquiry are discouraging many investors from buying assets that are known for being risky.

Sukhi Jutla, co-founder of MarketOrders, agrees with this view. She cites several macro factors that can impact bitcoin’s price. Jutla told CCN,

As we edge towards the end of the year, the global landscape continues to look volatile caused primarily by the political uncertainties plaguing the UK with Brexit, impeachment charges against Trump in the US, and still unclear regulations around cryptocurrency uses across the financial landscape. These factors are not providing businesses with the clarity they need in terms of how and if they can utilize crypto in their business models.

She added,

I predict it will be a slow burn and we’re unlikely to see BTC crossing the $10,000 mark as we close out this year.

Bitcoin Must Retake $8,000 to Restart Its Bullish Trend

All hope is not lost. If there’s any asset that can pull off a surprise, it’s bitcoin.

To do so, the number one cryptocurrency needs to trade above $8,000. That’s according to trader Max. The analyst spoke to CCN about the prospects of bitcoin climbing to $10,000 before the year ends. He gave me levels to look out for. These price areas would indicate that bitcoin is turning bullish.

$7,500 would be a start, but I would really start to give it some weight as we get back above $8,000- $8,300.

With bitcoin threatening to breach support of $6,800, it seems that a Santa Claus rally is improbable. If bitcoin has more downside potential, let’s hope that the leg down would be quick.

Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.

This article was edited by Sam Bourgi.

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