After a long period of Bitcoin’s bulls and bears remaining deadlocked, the cryptocurrency’s bears have ultimately prevailed as the stronger force, sending BTC plunging below its previous range lows at $9,000.
Bitcoin’s drop has led many analysts to predict that further losses are imminent for the cryptocurrency, with one analyst noting that the cryptocurrency is currently showing a similar pattern to the one seen in November just prior to its drop to below $4,000.
Bitcoin Plummets During Early Morning Movement
At the time of writing, Bitcoin is trading down over 4% at its current price of $8,890, which marks a notable drop from its daily highs of over $9,300 that were set yesterday as BTC traded sideways within the middle of its previously established trading range between $9,000 and $9,500.
This period of sideways trading and subsequent drop has led analysts to set short-term targets in the lower-$8,000 region for the cryptocurrency, with HornHairs – a popular crypto analyst on Twitter – telling his followers that he is expecting BTC to find support around $8,600 in the near-term, which could be enough to bolster its short-term price action.
“$BTC game plan. If we take out the current low I’ll be bidding in the green box (last level of demand on the 2H before ripping upwards). Also lines up with a potential three drives pattern (1.272 + 1.618 fib extensions). Let’s see,” he said while pointing to the support line seen on the chart below.
Another interesting pattern that should be noted is that Bitcoin’s daily and weekly candles are showing a similar formation to that seen in November of 2018 right before the cryptocurrency plummeted to lows of $3,400.
Big Chonis – another popular cryptocurrency analyst on Twitter – spoke about this in a recent tweet, saying:
“$BTC – daily and weekly Heikin Ashi showing bearish candles in different ways, as the daily breaks the consolidation trend and the weekly showing reversal from previous trend which has been bullish… #bitcoin similarities to last November’s price action playing out.”
Assuming that this formation continues to play out, significantly further losses could be in store for the cryptocurrency before it finds any meaningful long-term support.