As predicted, a big movement came for bitcoin following a week of consolidation. Analysts have been mixed all week but those that leaned towards bearish were right as the king of crypto plunged back into four figures a few hours ago.
Bitcoin Nearing New Low
A huge red candle resulted in a dump of over 9% for BTC a few hours ago. The pennant that was identified by analysts yesterday reached its conclusion and what appeared to be an upside breakout actually turned into a massive slide.
From an intraday high of $10,270, bitcoin dumped almost $700 in less than an hour. BTC found temporary support at around $9,650 before losses started to accelerate again an hour or so ago. The next slide went even deeper, bottoming out at around $9,330 according to Tradingview.com
The next support level lies at the previous lowest point which is around $9,000. If that cannot hold, BTC will fall back into the $8k region as many have predicted. Trader and analyst ‘CryptoFibonacci’ has been looking at the daily chart which shows support where a number of technical indicators align.
I just switched this Line chart over to a candle chart and put Fibs on this. And low and behold, look what we have. Fib cluster, 200 day ma, gap fill area and the old resistance/new support area. That is a massive area.
$BTC Daily chart – Update
I just switched this Line chart over to a candle chart and put Fibs on this. And low and behold, look what we have. Fib cluster, 200 day ma, gap fill area and the old resistance/new support area. That is a massive area.#BTC pic.twitter.com/iPhndzF9fB
— CryptoFibonacci (@CryptoFib) August 29, 2019
Following that, the trader added that an expected drop to $8800-$9000 would be bought up pretty quickly. At the time of writing bitcoin was still falling and heading towards the $9k level so this price range looks very plausible at the moment.
Fellow crypto analyst ‘WelsonTrader’ has noted a trend line that needs to be held to prevent further losses for BTC.
Bulls have 1 chance to bring #Bitcoin above 10k, and it’s if it bounces from this green support line. I’ve known for weeks that it would re-test this line, and I’ve posted about it before!
Bulls have 1 chance to bring #Bitcoin above 10k, and it's if it bounces from this green support line.
I've known for weeks that it would re-test this line, and I've posted about it before!
Do you think it will bounce or drop below? pic.twitter.com/WSDF9IF7Xr
— WelsonTrader 📊 (@WelsonTrader) August 29, 2019
Bitcoin is now approaching a critical level in terms of support over the past couple of months. To remain range bound it would need to bounce from its current price [coin_price]. Failure to do so within the next couple of hours is likely to see BTC fall back below $9k for the first time since mid-June.
All eyes are on the charts now as the sharks begin to circle in the $8k zone, waiting for that fall.
Will bitcoin retreat back to $8k? Add your thoughts below.
Images via Shutterstock, Twitter @CryptoFibonacci, @WelsonTrader, BTC/USD charts by Tradingview