Bitcoin has tumbled below $7,000 on Friday, which has surprised many investors. If the current support level at $6,900 doesn’t hold, the chances are that the bearish mood will extend.
Bitcoin Slips on Good Friday
Most of the traditional markets are closed today in observance of Good Friday, but crypto exchanges don’t experience a significant drop in trading volumes. This suggests that the bearish move is genuine and might continue if bulls don’t hold at $6,900.
On April 7, Bitcoin formed a double top, which is often a bearish pattern in technical analysis. Bitcoinist anticipated that the largest cryptocurrency might face a painful correction if it doesn’t break above the double top’s peak. It didn’t happen – Bitcoin had moved sideways within a range between $7,100 and $7,430 until finally giving up.
It seems that the correction has been triggered by whale traders. Since yesterday, Twitter bot Whale Alert posted an unusually high number of large Bitcoin transactions, most of which moved from crypto exchanges to unknown wallets. Some of the largest moves might have been internal transfers, but most of them were too small to be considered internal reshuffles and too large to be ignored.
🚨 🚨 🚨 5,000 #BTC (36,484,419 USD) transferred from #Bitfinex to unknown wallet
— Whale Alert (@whale_alert) April 9, 2020
🚨 1,500 #BTC (10,892,932 USD) transferred from #OKEx to unknown wallet
— Whale Alert (@whale_alert) April 9, 2020
🚨 🚨 3,746 #BTC (27,380,655 USD) transferred from #Bitmex to unknown wallet
— Whale Alert (@whale_alert) April 9, 2020
What’s even more worrying is that some of these large transfers came less than two hours ago after the largest bearish candle. This suggests that the downtrend might get worse as the liquidations continue.
900 #BTC (6,270,023 USD) transferred from #OKEx to unknown wallet
— Whale Alert (@whale_alert) April 10, 2020
1,130 #BTC (7,880,735 USD) transferred from #RenrenBit to unknown wallet
— Whale Alert (@whale_alert) April 10, 2020
Bulls Will Come Back Stronger
Even if the Bitcoin price will slip to $6,300 or even $6,000, it simply means a discount price for bulls, who will come back much stronger in the medium-term future. Many expected that the Fed’s further stimulus worth $2.1 trillion would push Bitcoin prices, but it seems that the recovery is postponed.
The crypto market will also benefit from the halving, though the bold rally is expected after the event.
Even in these conditions, Bitcoin might break above $7,500 soon if it manages to hold at the current level.
Do you think Bitcoin will slip to $6,000? Share your thoughts in the comments section!
Images via Shutterstock, Twitter:@whale_alert , BTC/USD chart by TradingView