Bitcoin and the entire cryptocurrency markets have been caught in the throes of volatility as of late, which has resulted in the formation of a period of consolidation for BTC.
This period of consolidation has left many traders scratching their head as to where it is heading next, but analysts are now noting that the formation of several bearish technical formations could point to the strong possibility that the crypto will drop below the $9,000 region in the near-future.
Bitcoin Slowly Descends Lower, But a Sharp Drop Could be Imminent
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $11,420, which is down significantly from its 24-hour highs of nearly $12,000.
BTC’s upwards move towards $12,000 yesterday, and subsequent drop today, signals that bulls have not been able to regain control over the cryptocurrency, which may mean that significantly further losses are imminent.
This downwards pressure that Bitcoin has been experiencing as of late first began with it sharply moved to $13,800 in late-June, which sparked a torrent of selling pressure that has led it down to its current price levels.
Now, one prominent cryptocurrency analyst is noting that BTC has formed a bearish head and shoulders pattern, which could result in a sharp and sudden drop to below $9,000, should its neck line break.
“$BTC – if that neckline breaks down,” Chonis Trading ominously noted in a recent tweet.
Analyst: BTC Must Hold Above $10,900 in Order for Price to Maintain Stability
Chonis is not alone in his bearish outlook on Bitcoin, as other prominent cryptocurrency analysts are noting that the cryptocurrency is currently resting on the edge of a precipice that could result in significantly further losses.
Josh Rager, another analyst on Twitter, spoke about BTC’s recent price action in a tweet, explaining that he is looking towards the lower-$9,000 region as a near-term price target, assuming Bitcoin is unable to hold strong above the upper-$10,000 region.
“$BTC Daily perspective: Really want price to stay & close above $10,900s to maintain hope. Any break & close below $10,577 would signal a change in trend short term & I’d be looking at low $9ks as the next target on the daily. Still bull market IMO (would only be a pullback),” he said.
It is highly likely that analysts will soon understand whether or not Bitcoin and the aggregated crypto markets will soon face a sharp drop, or if bulls will step up and push the cryptocurrency’s price higher in the near-future.