BTC is holding to dear $8K support. Recently, it went down as low as $7500 but went back up swiftly on the positive comments from Chinese President Xi Jinping.

Now it is sliding towards a low support. Now question is whether we will see $5K ever. All agreed that recent low of $3150 is the end of bear market. It means that BTC will never see $3150 again unless we are still in (BTC) bear market which is very unlikely.

However, $5K is a tricky number. It is just $2.5K below $7.5K, the recent low. BTC has already corrected more than $5K from its recent high of $13K. Therefore, $5K does not seem out of touch.

Now question is what will bring down BTC to $5K, a major negative news related to cryptocurrency such as Tether issue, negative comment from a President (i.e. it already happened, it did not work), Chinese ban (happened several times), a large hacking at major exchange (i.e. a good possibility but exchanges are smarter these days), a pissed of BTC whales or simply unknown unknown etc.

![](https://cdn.steemitimages.com/DQmZMuCa29ZPAzzxvfZyPREX2d2hkYdizf2axVMV8CFibK4/image.png)

Another factor is that mining cost of Bitcoin is still quite high which does not let miners to dump BTC at lower price. In that case, miners will hold BTC for better price in future. Day traders cannot dump BTC since they does not hold BTC for long. 

Moreover, with every new infrastructure (e.g. as recent as Fidelity BTC custody), BTC's demand keeps rising. Only way when BTC can go down if a whale or large number of whales who bought or mined BTC at lower than $5K, dump in big numbers. Long term investors who bought BTC above $5K can also dump BTC at current or lower price. However, for that to happen a major breakdown of confidence should happen.

My gut feeling is that we may not see $5K again since major bullish event of BTC halving is nearing. BTC's inflation rate is already lower than inflation in USD fiat supply. Therefore, $8K, $7K, $6K BTC may sound cheap to lots of investors in the age of monetary easing who are in sidelines to chip back in.

Now the question is what could be recent lowest price, will BTC break down $7.5K. My guess is that it may move sideways and can suddenly down to $7K or even $6K. However, any small good news can uplift BTC from its current short bearish trend.

**Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions. This opinion is only for educational purpose.**

![](https://cdn.steemitimages.com/DQmZ5Kf2gP7TTJ67SmHzRNqQHdsSHUg3rAecV6PN4W4c29Z/image.png)


Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.

Thanks for reading.
@dtrade
Cryptominer , occasional trader and tech blogger since 2013