Market Update: Bitcoin Price Drops Below $9000

Following the price movements in Crude Oil last week, Bitcoin witnessed a 20% drop in value. This was the biggest one-day sell-off since January 2018 after high swinging trades in the past week. In January 2018, the price had dropped from $13,980 to $10,250 within a few hours and this drop took the price from $9,804 to $8,370. On some exchanges, the price dropped below $7,700.

What triggered this fall? Oil prices have been volatile throughout last week and the threat of low supply means higher prices. There was potential oversupply from the US and that swiftly brought prices down. However, is this an imminent move? Fundamental analysis has never truly impacted Bitcoin prices since fake news and rumors do the round more often than real news. There have been claims of BTC price hitting $50,000 in 2019 and there is no evidence to back these baseless claims. Technical Analysis proves that in the wide sphere of crypto influence, volumes lead the game and shift sentiments on a global scale. Volume guides price action in the Bitcoin market.

Traders following the weekly and daily charts could easily predict that for the bull run that started in June 2019 was similar to the 2017 bull run in many ways. Traders who saw that coming bought Bitcoin in the $7-8K range and exited at $13K. The massive selloff that the market witnessed a few hours ago is history repeating itself. Within 30 minutes the price dropped over 12%, so with the benefit of hindsight, traders saw false breakouts in August and September 2019. Based on the 14-day RSI the market is oversold and the volume is on the floor. This indicates that we may see the price fall below $7,300 as sellers continue to panic and dump. There is a remote possibility that the selloff may get discounted by buyers looking to buy at cheap prices. The price is currently at its lowest since June 12, 2019. The market has lost $30 Million in capitalization in a 24-hour period. Analysts have estimated that a drop below $7K would take prices back to the $4K level.

All traders are now firmly eyeing the 200-day moving average (MA) that would officially mark the start of a new bear market should there be a strong close below $8,500. The price has corrected higher a few times today, however, there is heavy resistance at $8,000 and $8,700. Bulls are bending to bears this season and the psychological barrier of $8,800 is too tough to overcome.

There has been the talk of descending triangles for the past few months, however, Bitcoin pulled through some challenging market scenarios and stayed well above $8,000 for the past few months. Following a breakdown of the market leader, altcoins have been on a slippery downward slope with barely any support and strong upside resistance. The analysts who predicted a sharp price fall are more than fascinated by this mass-market correction. Should the currency find it hard to hold support, it may hit $5-$4K before the end of 2020. However, analysts have predicted that if the price moves further down it will rise quickly.

The arrival of Bakkt and the rising geopolitical tension was considered conducive for the cryptocurrency, however, the rising uncertainty had the better of Bitcoin and the price went for a toss. The shocking price drop in the face of Bakkt’s recent future launch has put tremendous pressure on buyers to hold the price above $8,500. While what goes down comes up eventually, the graph is far from a straight line. Currently, there is no relief in sight for Bitcoin believers.





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