Bitcoin Plunges By $300 in Minutes as Bearish Sentiment Mounts

Over the past 30 minutes, Bitcoin (BTC) has plunged by $300 from $9,515 to $9,200. As such, the cryptocurrency is now trading 3% down on the day. While this wasn’t a decisively bearish move in and of itself, a sentiment that “the rally is over” is starting to bubble in trading circles.

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Bearish Bitcoin Analyses Rack Up

This move comes as bearish Bitcoin analyses have begun to reappear on Twitter, despite the historical 42% move that the leading cryptocurrency saw on the weekend.

As reported by NewsBTC previously, analyst Velvet noted that Bitcoin’s recent surge upward hasn’t convinced him that a crypto market rally to fresh all-time highs isn’t inbound. They argued that their analysis indicates Bitcoin may be trading in a textbook bearish pattern defined by prominent historical technician Richard Wyckoff.

As Velvet pointed out, the recent rally, according to Wyckoff’s studies, might just be a “throwback” to a bull trend before an eventual breakdown, defined as a “markdown” by the analyst.

Their analysis indicates that the target of the downside move could be closer to where Bitcoin broke out of its accumulation range, near $5,800.

Velvet isn’t the only one spouting bearish analysis. Crypto Walker argued that BTC is still trending in descending channel, having been rejected in a high-volume move at resistance. He added that with the “death cross” still formed and there having been a large “drop in open interest,” he remains bearish.

Bullish Above $8,000

Although there is a growing level of sentiment hinting at an impending correction for Bitcoin, popular macro and crypto analyst Alex Krüger has kept it simple. In a recent tweet, he remarked that Bitcoin’s chart remains bullish as long as the cryptocurrency remains above the $8,000 to $8,200 region — some 15% lower than the current price point of $9,300.

He remarked in an earlier tweet that a loss of the abovementioned region will render the recent Bitcoin bull move “dead,” and thus lead to a continuation “lower,” presumably below the multi-month low of $7,300 established late last week.

Related Reading: Analyst: Bitcoin May Target $8,900 After Being Rejected at Key Resistance

 

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