The current Bitcoin price momentum makes very little to no sense. Many people expected big things in 2019, yet it seems every minor uptrend is pushed down in violent fashion. Even notorious Bitcoin bull Tim Draper acknowledges the year 2019 will not yield the predicted results. In fact, he claims the Bitcoin value will struggle significantly to reach $250,000 – assuming that ever happens.
The Failed Bitcoin Price Prediction
A lot of people expected Bitcoin to rebound strongly after what can only be described as a painful 2018. After the world’s leading cryptocurrency set a new all-time high in late 2017, things have gone downhill at an alarming rate. The price bottomed out near $3,000 and has been trying to regain some of the lost momentum ever since. Today, one Bitcoin is worth $11,4000, which is a more than respectable value.
According to Tim Draper, 2019 would be the beginning of a strong Bitcoin price rebound. So much even that this year would pave the way to reaching $250,009 by some point in 2022. That prediction has now been corrected by Draper, as he confirms it will take until Q1 2023, if not longer, until such a value can effectively be reached. Delaying such a Bitcoin price prediction mid-2019 only confirms this year will not yield any major value gains either.
The Rising Bitcoin Dominance Index
What is rather interesting is how the altcoins continue to fail miserably at making traders a lot of good money. In 2017, everything seemed to gain value when Bitcoin did, but 2019 has yielded the exact opposite results. None of the alternative markets looks too appealing right now, as they all seem to suffer from a yo-yo effect. In most cases, values continue to drift lower every week, which only makes speculators antsier.
This becomes apparent when looking at the Bitcoin Dominance Index. Albeit it is not an official market metric by any means, it depicts the correlation between Bitcoin’s market cap and all other markets combined. Right now, the BDI sits at nearly 70%, confirming Bitcoin is pretty much the only market that really matters. Turning that situation around will be difficult, if not nearly impossible without fresh capital entering the ecosystem. It seems unlikely anyone will willingly buy into altcoins without some sign of them going up in value again.
Every Market is at a Turning Point
Those traders who want to remain positive despite the negative signs will gladly point out how traditional financial markets struggle as well. The Nasdaq, Dow Jones, and other similar go-to trading indexes are all noting significant losses. Combined with the devaluation of the Chinese Yuan and the Fed looking to lower interest rates in the US, a very precarious situation is created.
The bigger question is what this all means for Bitcoin and the altcoin markets. All of the stars seem to align for a major Bitcoin price bull run, yet there isn’t enough conviction among traders to make anything stick these days. Returning to the $13,000 level will not happen anytime soon, especially not when it needs to be turned into a new support level. As such, it seems this troublesome market trend will continue for quite some time, to much dismay of enthusiasts and traders alike.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currenc
The post The Rising Bitcoin Dominance Index Won’t Result in a Higher Bitcoin Price appeared first on The Merkle Hash.
Source: The Merkle
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