Bitcoin’s recent bout of downwards pressure has now sent its price decisively below $10,000, which appears to have marked the end of the long period of bullish momentum that BTC has experienced over the past several weeks.
Importantly, the recent drop has been leading many analysts to believe that the cryptocurrency has violated the parabolic formation it has formed in the past several months, but one prominent trader is now noting that BTC could possibly drop towards $6,100 and still maintain its parabolic formation.
Bitcoin Plunges Nearly 10% as Bears Take the Wheel
At the time of writing, Bitcoin is trading down over 7% at its current price of $9,680, down significantly from its recent highs of $10,600.
BTC’s recent move to the four-figure price region was first sparked in late-June when the cryptocurrency failed to decisively move past its 2019 high of $13,800, which proved to be a strong level of resistance that sparked the recent sell-off.
Although the drop below $10,000 is certainly negative for Bitcoin’s bulls, it is important to note that the crypto is still trading up significantly over a three-month period, as it is currently up from lows of $5,000, which were set in late-April.
Importantly, many analysts have been closely watching to see if Bitcoin violates the parabola it has formed in recent days, but Mr. Anderson, a popular cryptocurrency analyst on Twitter, explained that BTC may have several parabolic trend lines that could act as strong support, with the lowest one existing around $6,100.
“$BTC Parabolic Curve: Calling the end of a large Parabolic Curve is NOT EASY. It seems obvious & that is why it is hard. We already have a couple of fairly logical para-trend lines that we had to cancel & we have a cpl more that may end up being canceled as well,” he explained while referencing the below chart.
BTC Bears Celebrate as Selling Pressure Ramps Up
Although many Bitcoin critics had been quiet during its recent ascent, the same critics are now celebrating its recent losses, with Nouriel Roubini, a renowned economist and one of the most outspoken critics of the cryptocurrency, boasting about the fact that BTC is down 55% from its all-time-highs.
“BTC down 33% from June peak & 55% from ATH. It must hurt to get rekt so much! Calling bitcoin a currency, let alone 1000s of shitcoins down 95% from ATH, is a joke: not a unit of account, not means of payments (5tps); no stable store of value (-15% in a day),” he exclaimed in a recent tweet.
Nouriel’s framing of Bitcoin’s recent price action is quite interesting, however, as it also signals just how far its price has come in recent times, recovering significantly from where it was at in December of 2018, where it was trading down over 83% from its all-time-highs.
As the week drags on and BTC reacts to its newfound position within the four-figure price region, analysts and investors alike will hopefully gain greater insight into where the aggregated markets are heading next.