{"id":417745,"date":"2020-03-11T18:00:23","date_gmt":"2020-03-11T18:00:23","guid":{"rendered":"https:\/\/wncen.com\/?p=417745"},"modified":"2024-06-11T13:43:12","modified_gmt":"2024-06-11T13:43:12","slug":"grim-observation-shows-bitcoin-could-crash-50-towards-4000","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/grim-observation-shows-bitcoin-could-crash-50-towards-4000\/","title":{"rendered":"Grim Observation Shows Bitcoin Could Crash 50% Towards $4,000"},"content":{"rendered":"

After making multiple attempts to propel Bitcoin past $8,000 yesterday, the cryptocurrency\u2019s bulls appear to have lost their tempered momentum, as BTC is now drifting down towards its key near-term support at $7,700.<\/p>\n

This ongoing bout of consolidation has done little to offer clarity into which direction the crypto will trend next, but the potency of its recent downtrend coupled with the degrading technical strength seems to favor bears.<\/p>\n

Furthermore, one bearish observation also suggests that the ongoing selloff could extend significantly further, although a potential drop to lows of roughly $4,000 may only be catalyzed by a global recession or a significant extension of the ongoing turbulence in the traditional markets.<\/p>\n

Bitcoin at Risk of Seeing Significant Losses Due to These Two Key Levels<\/strong>\u00a0<\/strong><\/h2>\n

At the time of writing, Bitcoin<\/a> is trading down just under 3% at its current price<\/a> of $7,890, which marks a notable decline from daily highs of $8,100.<\/p>\n

It now appears that BTC is once again entering a bout of consolidation, as the cryptocurrency has found notable support around $7,700 and resistance around $8,100 \u2013 which of these levels are broken first will offer guidance into where it will trend next.<\/p>\n

One interesting observation that could suggest Bitcoin\u2019s ongoing selloff will extend further than most investors anticipate is the fact that some analysts believe that every key resistance level BTC faces will ultimately be retested as support.<\/p>\n

There are currently two resistance levels<\/a> formed in 2019 \u2013 at $5,800 and $4,160 \u2013 that have yet to be retested as support, potentially being a sign of just how deep this retrace could cut.<\/p>\n

\u201cI know that I’ve said: \u2018Every single resistance level will always be tested as support\u2019\u2026 I take it back, I don\u2019t want that to happen anymore,\u201d Teddy, a prominent crypto trader and analyst explained in a recent tweet.<\/p><\/blockquote>\n

https:\/\/twitter.com\/TeddyCleps\/status\/89562626<\/p>\n

What Could Cause a Drop of This Magnitude?<\/strong><\/h2>\n

It is important to keep in mind that Teddy further goes on to explain that the above analysis is not a trade idea or prediction but is rather just an observation.<\/p>\n

He also adds that in order for Bitcoin\u2019s ongoing downtrend<\/a> to lead it that low it would require a \u201cterrible recession to see people panic sell that low.\u201d<\/p>\n

This may be a growing possibility, however, as the ongoing turbulence within the global markets stemming from the rapid spread of the Coronavirus (COVID-19) has led Bitcoin to trade firmly as a \u201crisk-on\u201d asset.<\/p>\n

Because of this, its correlation to the traditional markets could mean that a recession will prove to be dire for its price action, potentially sparking a capitulatory selloff.<\/p>\n

Featured image from Shutterstock.<\/pre>\n","protected":false},"excerpt":{"rendered":"

After making multiple attempts to propel Bitcoin past $8,000 yesterday, the cryptocurrency\u2019s bulls appear to have lost their tempered momentum, as BTC is now drifting down towards its key near-term support at $7,700. This ongoing bout of consolidation has done little to offer clarity into which direction the crypto will trend next, but the potency of its recent downtrend coupled with the degrading technical strength seems to favor bears. Furthermore, one bearish observation also suggests that the ongoing selloff could extend significantly further, although a potential drop to lows of roughly $4,000 may only be catalyzed by a global recession or a significant extension of the ongoing turbulence in the traditional markets. Bitcoin at Risk of Seeing Significant Losses Due to These Two Key Levels\u00a0 At the time of writing, Bitcoin is trading down just under 3% at its current price of $7,890, which marks a notable decline from daily highs of $8,100. It now appears that BTC is once again entering a bout of consolidation, as the cryptocurrency has found notable support around $7,700 and resistance around $8,100 \u2013 which of these levels are broken first will offer guidance into where it will trend next. One interesting observation that could suggest Bitcoin\u2019s ongoing selloff will extend further than most investors anticipate is the fact that some analysts believe that every key resistance level BTC faces will ultimately be retested as support. There are currently two resistance levels formed in 2019 \u2013 at $5,800 and $4,160 \u2013 that have yet to be retested as support, potentially being a sign of just how deep this retrace could cut. \u201cI know that I’ve said: \u2018Every single resistance level will always be tested as support\u2019\u2026 I take it back, I don\u2019t want that to happen anymore,\u201d Teddy, a prominent crypto trader and analyst explained in a recent tweet. https:\/\/twitter.com\/TeddyCleps\/status\/89562626 What Could Cause a Drop of This Magnitude? It is important to keep in mind that Teddy further goes on to explain that the above analysis is not a trade idea or prediction but is rather just an observation. He also adds that in order for Bitcoin\u2019s ongoing downtrend to lead it that low it would require a \u201cterrible recession to see people panic sell that low.\u201d This may be a growing possibility, however, as the ongoing turbulence within the global markets stemming from the rapid spread of the Coronavirus (COVID-19) has led Bitcoin to trade firmly as a \u201crisk-on\u201d asset. Because of this, its correlation to the traditional markets could mean that a recession will prove to be dire for its price action, potentially sparking a capitulatory selloff. Featured image from Shutterstock.<\/p>\n","protected":false},"author":499,"featured_media":415798,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5651,3],"tags":[428,1119,6664],"class_list":["post-417745","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","category-news","tag-bitcoin","tag-btc","tag-crypto"],"acf":[],"yoast_head":"\nGrim Observation Shows Bitcoin Could Crash 50% Towards $4,000<\/title>\n<meta name=\"description\" content=\"One bearish observation suggests that the ongoing Bitcoin selloff could cut extremely deep, potentially leading BTC to drop as low as $4,000\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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