Bitcoin Looks Bearish as Analysts Eye A Drop to Mid-$8,000

Bitcoin Looks Bearish as Analysts Eye A Drop to Mid-$8,000

A big move was expected for bitcoin price and it came yesterday with a swift plunge back into four figures. The move resulted in a $15 billion dump from crypto market capitalization as altcoins blindly bled out in the shadow of their big brother.

Bitcoin Does Another ‘Bart’

These ‘Bart-type’ chart patterns have become pretty common over the past week or so as BTC has ranged between mid-$9,000s and low $10,000s. BTC touched $9,300 twice over the past few hours after falling 8% from just over $10k. The move has not been unexpected but has now dropped bitcoin price below the 50 and 200 moving averages on the four-hour chart and below the 50 day, MA as the downtrend strengthens.


BTC price 1-hour chart –

Trader ‘CryptoFibonacci’ took a look at the day chart pinpointing support levels in the mid-$8,000s range.

“The 10 and 20 ema’s are driving this lower for now. No need to fight them. Broken 78.6 fib retrace as well. Big time support down around 8500-8700 area.”

Fellow trader ‘Bleeding Crypto’ is also eyeing sub $9,000 prices in the next move down for bitcoin.

“$BTC Looking at this, along with some other indicators and I think we have may hit $8800 in the next few days. Not to say that we may have some small pumps but its more likely $8800 will be upon us sooner than later.”

Bitcoin price found a floor around the $9,450 level and has ranged around that for the best part of the past 24 hours, currently trading at 00. A drop to $8,300 would be 40% in terms of correction, which has happened several times in the past so would not be out of the question this time.

BTC Back Up Next Week?

Some are a little more bullish with crypto warlord John McAfee leading the calls for resuming the bull run. He has forecast a big move next weekend but refrained from elaborating on what could be the trigger.

“Bitcoin is under pressure from the U.S. and its price reflects it. But the U.S. has no real power in controlling CryptoCurrency. Just watch. A week from today Bitcoin will continue its meteoric rise.”

One possible catalyst could be the lowering of interest rates by the FED next week. This would be a sign of a slowing US economy and possibly a weaker dollar which is bullish for bitcoin price. Fundstrat’s Tom Lee concurred with his comments yesterday, but he also added that BTC should rise this weekend whereas it has actually done the opposite.

Will bitcoin price bounce back next week? Add your predictions below. 

Images via Shutterstock, Tradingview, Twitter: @CryptoFib, @Bleeding_Crypto, @officialmcafee

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