Bitcoin Breaks Below $10,000 as Bears Celebrate
At the time of writing, Bitcoin is trading down roughly 1% at its of $9,900 but is down significantly from its daily highs of $10,200 that were set yesterday.
BTC’s one-week price action paints a grim picture for the cryptocurrency, as it is currently trading down significantly from its seven-day highs of $11,000 that were set this past weekend, which sparked this latest sell-off.
Bitcoin’s inability to move above $11,000 set a lower high for the cryptocurrency and marks a significant extension of the downwards pressure that was first incurred when its price sharply moved to highs of $13,800 in late-June. Importantly, analysts do believe that Bitcoin will continue to face further selling pressure in the near-future, with Chonis Trading, a popular cryptocurrency analyst on Twitter, explaining that he believes the crypto could soon drop towards $9,000.“$BTC A measured move from the completion of this bear flag would take #bitcoin down to $9K area,” he said while referencing the below chart.
A measured move from the completion of this bear flag would take down to $9K area… — BIG Chonis (@BigChonis)
BTC Continues Crashing Through Parabolic Trend Lines as Selling Pressure Flourishes
During the course of Bitcoin’s massive bull run that sent it from lows of $3,400 to highs of $13,800, it formed multiple parabolic trend lines that mark important levels of support for the cryptocurrency. Chonis Trading also spoke about these trend lines in a recent tweet, explaining that it has already broken through two of these trend lines, and is currently pushing up against a third one.“$BTC – flirting with losing its third parabolic advance line,” he said while referencing the five parabolic trend lines seen below.
– flirting with loosing its third parabolic advance line — BIG Chonis (@BigChonis)
Although it will likely take some time before Bitcoin touches the fourth and fifth trend lines in the above chart, in theory BTC could drop as low as $4,400 while still maintaining a wide parabolic formation.
As long as the crypto continues to hold above the mid-to-upper $9,000 region, however, it may be able to hold above the third trend line, which could lead it significantly higher in the near-future. Featured image from Shutterstock.