Bitcoin Has Fallen Significantly Below $9,000: Will There Be A Further Drop In Prices?
Despite the optimistic forecasts of many analysts, Bitcoin was never able to meet the expectations for a breakthrough above the $10,000 milestone. The price of the flagship cryptocurrency has turned back. A sharp breakdown of the Bitcoin resistance level of $9,500 and a continuous rollback confirms fears that Bitcoin may fall to the level of $8,200 and $8,000.
Bitcoin is trying to bounce off the low of $8,642
According to the latest data, Bitcoin is now heavily influenced by bears. The price of the flagship cryptocurrency broke through key support levels of $9,200 and $9,000. Thus, compared to last week, the price of Bitcoin fell by 4% and now it is trading below $9,000.
As a result of Bitcoin price fluctuations, new support levels have been recorded. Today, an indicator of $8,642 is an anti-record, which demonstratively indicates a suspension of the bull trend. This indicator is a weekly low, but Bitcoin is trying to rebound to the first resistance level of $8,800. Thus, for several days, Bitcoin was below the 100-hour moving average.
To restore market positions and return to an uptrend, Bitcoin must overcome the $9,000 barrier. The first positive indicator will be the consolidation around the level of $9,150. In this price region, Bitcoin will be able to reach the Fibonacci correction level and will be able to move already under the influence of bullish impulses. Only under the conditions of this scenario, the flagship cryptocurrency will be able to “shake off” the fall.
What will happen next with Bitcoin?
Now cryptanalysts are considering 2 scenarios. According to positive forecasts, the price of Bitcoin will be able to make a breakthrough above $9,150 and continue to move up. If bullish impulses play, Bitcoin will be able to overcome the main resistance level of $9,200 and gradually restore market indicators that were recorded last week.
The second scenario is more pessimistic: if the price of Bitcoin falls below the main support level of $8,600, the next step will be a decline to a very shaky level of $8,642. If the bearish trend intensifies, the price of Bitcoin may fall to the support level of $8,380. It is also possible that due to the pressure of the bears, the BTC/USD pair may decline to the level of $8,000.