After a brief period of consolidation, Bitcoin has once again made another downwards movement that has led it below its previous support level at $8,000. This latest bout of downwards momentum has opened the gates for significantly further losses, assuming bulls don’t step up and propel BTC higher.
One prominent analyst is now noting that a failure for BTC to maintain above its last-ditch support level at $7,700 would likely lead to a sharp and swift drop into the $6,000 region.
Bitcoin Cuts Deeper into Late-October Gains as Bears Roar
At the time of writing, Bitcoin is trading down just under 6% at its current price of $7,670, which marks a notable retrace from its daily highs of $8,300 that were set yesterday during a fleeting rally that came about after bulls attempted to build some upwards momentum.
Previously, BTC had bounced on multiple occasions after tapping the $8,000 level, signaling that this was a strong support region for the cryptocurrency. Today’s sharp movement to below this level, however, signaled that bulls have retreated from this level and may mean that further losses are imminent.
In the near-term, it is imperative that BTC closes above $7,700 or else significantly further losses could be imminent.
DonAlt, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting that a failure for it to close above this level could spark a sell-off that sends it to $6,900.
“$BTC update: This is why I don’t knife catch below a level that should’ve held in the first place. Waiting for the daily close to see if we can at least reclaim $7700. If not I’m personally looking at $6.9k,” he explained in a recent tweet.
$BTC update:
This is why I don't knife catch below a level that should've held in the first place.
Waiting for the daily close to see if we can at least reclaim $7700.
If not I'm personally looking at $6.9k. pic.twitter.com/z2B9J9NRwp— DonAlt (@CryptoDonAlt) November 21, 2019
Analysts Agree: Close Below $7,700 Could Spark Sell-Off to $6,000 Region
DonAlt is not alone in his analysis, as Josh Rager, another popular cryptocurrency analyst on Twitter, recently explained that he believes a movement to the $6,000 region could be imminent if bulls aren’t able to step up and push the crypto higher in the near-term.
“$BTC Update: Bitcoin price at a key area with monthly support area at $7725 and the current VWAP (Volume weighted average price) is at $7717. This marks more of a realistic value for Bitcoin & I’m hopeful as long as price stays above $7700 – if not, I see price hitting $6ks,” he explained in a recent tweet.
https://twitter.com/josh_rager/status/1197509797232467969?s=21
The coming few days will likely offer analysts and investors alike significant insight into where the markets are heading next, as its daily close today could set the tone for where it trends for the weeks and months to come.
Featured image from Shutterstock.
