Bitcoin (BTC) has plummeted into the $7,000 region today as bears continue working to erase all the gains that were incurred during the crypto’s meteoric rally in late-October, which may signal that significantly further downside is imminent for the embattled cryptocurrency.
Analysts are now noting that Bitcoin is “on life support” as it trades around a critical support level, and analysts are also noting that a lack of a decisive bounce at the cryptocurrency’s current price levels could mean that a move to sub-$7,000 is imminent.
Bitcoin Plummets Below $8,000 Support Level, Putting it on “Life Support”
At the time of writing, Bitcoin is trading down 6% at its current price of $7,650, which marks a notable drop from its daily highs of $8,300, and an even steeper drop from its weekly highs of $8,800.
Bitcoin has been caught in a bearish downtrend ever since it retraced from its multi-month highs of $10,600 that were set at the peak of the late-October rally, and today’s drop simply marks an extension of this downtrend.
Prior to today’s movement, $8,000 had been holding as a strong level of support, and in the near-term the only clear support level that is stopping BTC from plummeting significantly lower exists at roughly $7,700.
Mayne, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling his followers that the crypto is currently sitting at “life support.”
“$BTC: On life support,” he said while pointing to the below chart.
On life support. pic.twitter.com/IrnL7OBWis
— Mayne (@Tradermayne) November 21, 2019
BTC Likely to Visit Sub-$7,000 Region in Near-Term
If Bitcoin is unable to post any sustainable bounce at its current price levels, it is highly probable that it will soon face significantly further downside as its bears take firm control of its near-term price action.
Loma, another popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling his followers that BTC is an “easy short to sub-$7,000” assuming it isn’t able to find any strong momentum at its current price levels.
“$BTC I wasn’t awake for it but we dumped to $7,800, no bullish reaction at all and dumped straight through a few hours later. Bears win again. Loma spot longs underwater but expecting some kind of relief here. No bounces here and it’s an easy short to sub $7,000,” he explained.
I wasn’t awake for it but we dumpednto $7,800, no bullish reaction at all and dumped straight through a few hours later.
Bears win again. Loma spot longs underwater but expecting some kind of relief here.
No bounces here and it’s an easy short to sub $7,000
— Loma (@LomahCrypto) November 21, 2019
The coming few hours will likely elucidate how Bitcoin will trend for the rest of 2019.
Featured image from Shutterstock.
