After a short period of upwards momentum earlier this week that appeared to be bull’s attempt to bolster Bitcoin’s price action, bears have once again gained the upper hand and have now pushed BTC’s price decisively below $8,000.
One prominent technical analyst is now noting that he believes this latest movement downwards points to the possibility that a movement towards the lower-$6,000 region is imminent, which may be further validated by multiple bearish technical formations that crypto is currently expressing.
Bitcoin Plummets Below $8,000 as Bears Roar
At the time of writing, Bitcoin is trading down roughly 2% at its current price of $7,960, which marks a notable retrace from its daily highs of nearly $8,200 that were set yesterday.
Although BTC had long found noteworthy support around the lower-$8,000 region, its inability to garner any upwards momentum during its time in this region was a bearish sign that elucidated that bulls were incurring were losing their strength.
In the near-term, it is important to note that Bitcoin is highly likely to incur further bearishness as it faces weak technical strength.
Josh Olszewicz, a popular crypto analyst on Twitter, explained in a tweet that the latest drop was sparked when it was denied at its 200-day EMA, and that a daily death cross is close to forming.
“4h $BTC – still in 3+ week range – straight down since denial at 200DEMA – daily death cross soon – daily bbands tight & rdy to expand down – unconfirmed bull div here,” he said.
4h $BTC
– still in 3+ week range
– straight down since denial at 200DEMA
– daily death cross soon
– daily bbands tight & rdy to expand down
– unconfirmed bull div here pic.twitter.com/liNAIVflv0— Josh Olszewicz (@CarpeNoctom) October 18, 2019
Analyst: BTC May Target $6,200 Next
The bearishness that Bitcoin has incurred during its recent bout of sideways trading and subsequent drop below $8,000 may extend significantly further, as Olszewicz is further noting that an accurate fractal pattern may signal that a movement to $6,200 is imminent.
“12h $BTC: alligator/fractal again calling for short entry on this candle close in a few hours (if the body is lower than fractal wick). TP for short according to multi-year PF = 6.2-6.9 based on Q1 diag,” he said while pointing to the chart seen in the below tweet.
12h $BTC
alligator/fractal again calling for short entry on this candle close in a few hours (if the body is lower than fractal wick)
TP for short according to multi-year PF = 6.2-6.9 based on Q1 diag pic.twitter.com/VmoCadPtBN
— Josh Olszewicz (@CarpeNoctom) October 18, 2019
Assuming that Bitcoin does drop lower in the near term and forms the death cross that is currently looming over the horizon, then it may drop significantly further before it finds enough momentum to spark the next multi-month uptrend.
Featured image from Shutterstock.