Sorry bulls, the Bitcoin (BTC) ball is in the court of bears yet again. As of the time of writing this article, the leading cryptocurrency’s price has just tumbled to just above $8,000, nearly tapping this key price point in a 5% drop lower. Buyers have started to step in, albeit only marginally, pushing BTC back up to $8,100.
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Bitcoin Ready for More Pain as Price Taps $8,000
Late last month, the price of Bitcoin literally surged by 42% in a 24-hour period, rallying from $7,200 to $10,500 in a surprise turn of events. While this move was undoubtedly bullish, this move hasn’t done much to stop the bleeding of the cryptocurrency market, which has been taking place for months now. Case in point, the low-$8,000s have been revisited yet again.
And analysts say this is bad for the short-term future of the cryptocurrency market.
Trader Byzantine General notes that this move is painful, as it pushes BTC below the key horizontal support of $8,300, which many said was a make or break point for this market. He thus concluded that he thinks it will make sense for the cryptocurrency to visit the lows in the low-$7,000s, which would mark another 15% drop from the current price levels.
However it does present a nice short opportunity.
I’m thinking it takes out the lows in the red box. pic.twitter.com/HYZjuGVdu7
— Byzantine General (@ByzGeneral) November 18, 2019
Trader CryptoISO echoed this, noting that the recent drop has brought Bitcoin to a macro trend line that has been relevant for months now. A move under that level would set up a chance to retest the lows.
Macro trend line tagged.
Below mid range.
That is a ~25% retrace since the China news. pic.twitter.com/sUO9Hk7OFR
— CryptoISO (@crypto_iso) November 18, 2019
Featured Image from Shutterstock. Charts from Tradingview.com