The big move that everyone was waiting on finally came a few hours ago. Bitcoin (BTC) price was smashed to a three month low of $8,000 while crypto markets shed over $30 billion in the resultant altcoin exodus.
Bitcoin (BTC) Price Descending Triangle Broken
There is not much to be happy about today as crypto markets suffer their largest daily crash of the year. Bitcoin plunged through its long-standing support level in the mid-$9,000s to bottom out at $8,000 before bouncing back a little.
The massive move knocked 17% off the price of BTC in 24 hours in one of its largest dumps this year. It has not been unexpected however as many analysts had pointed out that the descending triangle was a bearish chart pattern.
According to Tradingview.com BTC bounced off the $8k support line as buy orders were triggered. When the digital dust settled it found some steady ground at $8,500 and is currently trading at [coin_price].
The bitcoin fear and greed index plunged into panic mode and is currently registering ‘extreme fear’ at 15. Analyst and trader Josh Rager said that BTC needs to break above current levels or there will be a retest of support at $8k.
“If Bitcoin fails to break above the current level, we’ll get another retest of the support below – which has bounced once and could hold. But if this isn’t a bear trap I do see price heading down to low $7ks”
https://twitter.com/Josh_Rager/status/1176677431513665540
He added that there are a lot of buyers waiting between $6,180 and $6,500. Fellow trader Nick Cote has been monitoring the two week stochastic which could signal a larger trend reversal.
“Keeping a close eye on the 2W stoch. Momentum approaching the decision point of ‘is this a pullback’ or is this confirming a trend reversal, which would point to at least the $7,600 re-test.”
Keeping a close eye on the 2W stoch. Momentum approaching the decision point of 'is this a pullback' or is this confirming a trend reversal, which would point to at least the $7,600 re-test.
Notice how the last bull run, we oscillated between 50 and 100. #bitcoin pic.twitter.com/Uoic55TCKB
— Nick Cote (@mBTCPiz) September 25, 2019
Most are of the opinion that further losses are inevitable so a drop below $8k for bitcoin could follow.
Major Pain Elsewhere
The altcoins have all jumped off the cliff like the digital lemmings they are. Total market capitalization has been smashed over $30 billion in 24 hours in a fall back to $225 billion and most crypto assets are suffering double-digit losses today.
Ethereum has dumped back to support at $170 in a 16% slide while XRP has hit a new yearly low below $0.24. Tether has flipped Bitcoin Cash in terms of market cap as BCH gets pounded 23% back to $225.
Litecoin, Binance Coin, and EOS have all dumped 16-20 percent and BSV has been annihilated 25% falling below $85. The altcoin exodus is not over yet as nearly all of 2019’s gains get wiped out in one swift cull.
How low will bitcoin price fall this time around? Add your thoughts in the comments below.
Images via Bitcoinist Image Library, BTC/USD charts by TradingView, Twitter: @Josh_Rager, @mBTCpizpie