After a long period of consolidation within its previously established trading range, Bitcoin’s bears have now taken control and have pushed BTC’s price below its previous support level that existed around $9,000.
Today’s drop has led multiple analysts to set significantly lower targets for the cryptocurrency, and it is looking increasingly likely that it will touch its next key support level around $8,400 in the near-term before its bulls have the chance to build any strength.
Bitcoin Plummets Below $9,000 as Bears Roar
At the time of writing, Bitcoin is trading down nearly 5% at its current price of $8,850, which marks a notable drop from its 24-hour highs of $9,300.
Prior to today’s drop, Bitcoin has been caught in a relatively tight trading range between $9,000 and $9,500 for a couple of weeks, and neither bulls nor bears had been able to incur enough strength to push the crypto out of this trading range until early this morning when bears forced it below its lower range boundary at $9,000.
In the time since its drop, BTC has shown no sign of slowing its decent, as it continued to slowly grind lower as the morning dragged on.
Jonny Moe, a popular cryptocurrency analyst on Twitter, spoke about the recent drop in a tweet, explaining that the movement came about after bulls failed to propel BTC above the upper boundary of a bullish flag that it was previously trading within.
“I guess 3rd time’s a charm,” he concisely said while pointing to the below chart.
I guess 3rd time’s a charm. $BTC pic.twitter.com/faDi8z6qwB
— Jonny Moe (@JonnyMoeTrades) November 8, 2019
Analysts Target $8,400 in Near-Term as BTC Shows Increasing Signs of Weakness
DonAlt, another popular cryptocurrency analyst on Twitter, shared his thoughts on Bitcoin’s price action in a recent tweet, telling his followers that he expects Bitcoin to continue dropping lower until it touches $8,400.
“$BTC update: Even though the narrative has changed, the chart has not. I still think the area around $8400 is incredibly interesting. I’d be surprised by any major moves other than the above shakeout. I think we’ll range for quite a while longer,” he noted while pointing to the below chart.
$BTC update:
Even though the narrative has changed, the chart has not.
I still think the area around $8400 is incredibly interesting.I’d be surprised by any major moves other than the above shakeout.
I think we’ll range for quite a while longer. pic.twitter.com/YQfXmFvMlw— DonAlt (@CryptoDonAlt) November 8, 2019
How Bitcoin responds to its support levels within the lower-$8,000 region in the near-term will likely elucidate where the crypto is heading next, as a failure to find support here could lead to significantly further losses in the near-term.
Featured image from Shutterstock.