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Will Bitcoin continue to fall in January 2020?

Dimitar Bogdanov
  • December 29th, 21:56
  • Last Updated: January 2nd, 21:37
  • Google removes thousands of crypto-related videos
  • Tech giant Rakuten to allow users to convert loyalty points to crypto
  • Bitcoin well-positioned to continue moving lower in January

Bitcoin has lost nearly 50% in value since it made its 2019 high of $13880 in June this year. The price continues to move lower as we get closer to the end of the year. 

Google’s war with crypto continues

Tech giant Google isn’t helping Bitcoin recover as it continues to wage its war against crypto. In general, Google was never known for its positive stance towards bitcoin and crypto. The latest news from the tech giant suggest that this relationship has just taken a turn for the worse.

In March 2018 Google introduced a ban on cryptocurrency ads, which was lifted six months later in order to allow registered cryptocurrency exchanges to advertise on its Google Adwords platform.

Influential crypto bloggers have now complained that Google’s YouTube has removed thousands of their crypto-related content from its video-sharing platform. It seems that YouTube has targeted only small-size channels, without removing crypto-related videos published by CNBC and CoinTelegraph. 

The latest actions from Google prompted Binance’s CEO Changpeng Zhao to issue a rallying call.

While Google’s stance toward crypto is not a novelty at all, news of this type won’t help the world’s largest coin to recover and move higher.

Rakuten to allow users to convert loyalty points to crypto 

Rakuten Wallet, the crypto subsidiary of the e-commerce giant Rakuten, plans to enable its users to convert their loyalty points to bitcoin (BTC), ether (ETH), and bitcoin cash (BCH) cryptocurrencies, the company announced on its website

“Rakuten Super Points can be exchanged from amounts of 100 Rakuten Super Points and above. One Rakuten Super Point is equivalent to one yen when converted to crypto assets, and when the exchange is complete it will be reflected in the transaction history on the customer’s smartphone app”.

it is stated in the press release.

According to many, merchant adoption of crypto payments is key to mass adoption of cryptocurrencies. News of this type is surely positive however they won’t make a direct impact on the price of Bitcoin.

Bitcoin’s slide continues

Technically, Bitcoin has continued to move lower. Since creating a 2019 high in June, Bitcoin has created a series of lower highs, which means the price is moving to the downside. Bitcoin is currently down 5.1% in December, after it lost 17.5% of its value in November.

Bitcoin (BTC/USD) weekly chart
view full image

There are also some signs from the fundamental aspect that Bitcoin has a limited upside. Roger Ver, an early investor in Bitcoin, believes that the much-anticipated Bitcoin halving won’t help Bitcoin to move higher. The aim of halving is to control and reduce the number of bitcoins and control inflation. In general, the process of halving is considered to be positive in relation to the price of Bitcoin in the market. 

So far, there are no signs that the price action will make a recovery in January. If this should happen though, the market has to trade comfortably above $8000 for the groundwork to be laid for higher levels. The $6000 mark offers strong support should the market continue to trade lower in January.

Summary

News concerning Bitcoin and cryptocurrency market, in general, are mixed. Given that there are no major fundamental events and developments to directly impact the price, Bitcoin’s recent moves are mostly of a technical nature i.e. market’s prior behavior determines the future price.

Bitcoin’s price action is moving lower as technical indicators continue to apply the pressure to the downside. The price should reach lower levels in January, as the $6000 mark is a target for sellers. Simultaneously, this level offers an entry point for those looking to buy Bitcoin.

About the author

Dimitar Bogdanov
Dimitar Bogdanov
I have been a journalist for Invezz since 2012 and am one of the oldest on the team. My focus is on cryptocurrencies as well as general equity markets, although my experience is broad overall.

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