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Bitcoin Price Analysis: Bit-By-Bit the Coin Stepping Down towards $7k Mark

  • In Just 30 Minutes, the bitcoin prices dipped down more than 12% breaking the $8500 support against the US dollar.
  •        Bitcoin price drops to the lowest level since June 12 of this year.
  •        $30 billion has been drawn out of the market over a 24-hour period as investors sought to close their positions amid a frenzied sell-off.
  •        Analysts also estimate that any drop below $7,000 could trigger a devastating look out below situation for bitcoin.

BTC has once again left all the investors dumbstruck after a sharp selloff Tuesday as it rapidly dropped to 8.5K. Over the course of just 30 minutes, initiating at 16:00 UTC on Sept 24, the prices dipped down more than 12% breaking the $8500 support against the US dollar. It had been the lowest point since June 12 of this year leaving the mass shocked. In addition, $30 billion has been drawn out of the crypto market over a 24-hour period as investors sought to close their positions amid a frenzied sell-off. Eyes are now firmly fixed on the 200-day moving average (MA) that would officially mark the start of a new bear market should a strong close below $8311 occur.

At the time of writing bitcoin stands at $8474.21, the price is currently correcting higher and struggling to escalate but the $8,750 – $8800 levels are offering heavy resistance and preventing recovery. Cryptocurrency bulls appear to be stroked by the bitcoins continuous bending while many had predicted the same before. Analysts predict this level is further expected to sink into a nasty decline as for now $8800 barrier is challenging to overcome and the price below it can show even unexpected downflow.

Many technical analysts have been drawing a descending triangle for months now, which as per classical technical analysis theory is a bearish pattern. Though bitcoin managed to put in some slight efforts throughout the pattern which had some analysts claiming the price of BTC was trading, rather, in a symmetrical triangle – the cryptocurrency market leader has broken down through any support it had in convincing fashion. Those analysts who were claiming that bitcoin was trading inside a descending triangle have largely claimed that $8,500 would be the next major level of support –spurred on by intense buying interest and speculation. This belief was absolutely accurate as of the price at Bitmap almost perfectly hitting $8,500 .on other exchanges ,the bitcoin price didn’t make it that low. Analysts also estimate that any drop below $7,000 could trigger a devastating look out below situation for bitcoin, taking the market leaders price all the way back down to $ 5,400.Should this level not exist, the next significant level where one may speculate on a bitcoin bounce would be in the vicinity of $7,236, however, the analysts feel strongly that if the price moves further down it will rise up quickly.

The arrival of Bakkt was seen with optimism for bitcoin to flourish but it appears that it has degraded the value as the $1000 shocking price drop flies in the face of Bakkt ‘s recent futures launch, which was supposed to be a bullish catalyst but has so far fallen down proving to be futile. For now, there is a lot of pressure on buyers to hold the defensive and retain the official bullish status above the 200 days moving average at $8,311.A Universal truth is that whatever goes down, comes up as the graph cannot exist in a straight line so though gradually, but the price will escalate as the four-hour exponential moving average (EMA) ribbon has a solid history of acting as a resistance or support, especially on bitcoins CME futures chart.

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About Steve Anderrson

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic

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