Bitcoin price drops to $ 8,900 and fear fears a new downtrend begins
Traders fear that BTC may enter a new downtrend after the price fell below $ 9,000 today.
Bitcoin (BTC) price dropped to $ 8,900 on May 21 following a sharp rejection of the $ 9,800 level. The community claims that the collapse to $ 9,200 could trigger a new downtrend.
Almost all indicators point to a correction
In the short term, traders generally expect a correction to occur in the Bitcoin market. Almost all macro indicators and oscillators point to an impending correction.
When Bitcoin’s price was initially below $ 9,200, it fell below a key Bollinger Band line, which often marks a turning point. If an asset maintains an uptrend, it is normally expected to recover to the Bollinger Band midline.
But in the case of Bitcoin, it fell straight through it and dropped to $ 8,900 in quick succession. As such, you risk a drop to the bottom of the Bollinger Band, in the $ 8,000 area. According to Bitcoin trader Jonny Moe, the price of Bitcoin is at risk of falling below another trend line that returns it to the one it had before March 12.
Since the second week of March, the price of Bitcoin has risen incredibly from $ 3,600 to over $ 10,000. After not having recovered the support from $ 9,800 to $ 9,900, the BTC is now vulnerable to a deep pullback below the ascending channel. If Bitcoin’s price closes below $ 9,000, Moe said the $ 6,500 to $ 7,300 range is likely the next support for Bitcoin.
TraderXO for its part predicted a drop to $ 7,700 last week and said BTC is showing a typical “false ladder” that is at risk of taking a quick correction to less than $ 8,000.
Traders feel pessimistic
There are two main reasons that cause many of the top traders in the market to feel pessimistic: the lack of support between $ 7,700 and $ 9,000 and the upside potential of BTC above $ 10,500.
Bitcoin saw just a minor pullback when it went from $ 7,700 to $ 10,000. Although it demonstrates the strength of the momentum he had at the time, it also leaves him vulnerable to a considerable drop. Lack of resistance above $ 10,500 is also considered a factor preventing BTC from exceeding $ 10,000.
While there is little resistance above $ 10,500 at significant levels like $ 12,500 and $ 14,000, there is a strong restriction above between $ 10,000 and $ 10,500. In April, hedge fund manager Mark Dow said that Bitcoin faces massive resistance, even when the price of BTC was at $ 6,000.
The confluence of strong resistance in the $ 10,000 to $ 10,500 range and the lack of support between $ 7,700 and $ 9,000 increases the probability that the price of BTC will fall to the $ 7,000 zone.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.