It was somewhat to be expected the current cryptocurrency market trend would make a lot of traders unhappy. As Bitcoin continues to show severely bearish signs, the rest of the markets are getting battered as well. It seems unlikely the Bitcoin price will reach $9.000 again in the near future, as a drop to $7,000 is more plausible.
Bitcoin Price Isn’t Rebounding yet
The world’s leading cryptocurrency finds itself in a rather awkward position right now. Following a strong surge to $9,000 just a little while ago, it seems all of that hard work has been undone in rather quick succession. In fact, the BTC value dropped well below $8,000 and even hit $7,460 earlier today.
It does not take a genius to figure out this trend may not necessarily reverse course anytime soon. That is not what traders are looking for, but there isn’t much to be done. Most of the previous support levels above $7.500 have now turned into potential resistance targets, which means the uptrend – assuming that will materialize – could be long and brutal.
Several key hurdles will need to be overcome before Bitcoin can even attempt to reach $8,000 again. As of right now, there appears to be resistance near $7,603 as well as $7.745 and $7,815. Two more potential resistance levels are in place prior to reaching $8,000. As such, it seems unlikely the rest of the week will get many people excited about the Bitcoin price.
There is also the question as to where the actual support sits right now. Many people assumed the price wouldn’t drop below $7,800 so quickly, yet the opposite has come true. Depending on how one wants to analyze the Bitcoin price chart, the only real support might be relatively close to $5,000 and slightly above. Anything between that level and the current one is a free-for-all to take advantage of.
While it remains to be seen if this downtrend is only a sign of things to come, there has been tremendous pressure on the Bitcoin price for several days now A lot of BTC has been dumped on the open market to drive prices down. The real reason for this behavior is difficult to analyze, as very few parties would benefit from selling at the current price. After all, buyers have shown a keen interest in paying up to $1,400 per BTC more than the current value.
With the weekend almost around the corner, it seems more negative market momentum looms on the horizon. That is not what traders and enthusiasts want to hear, but it seems unlikely anything else will happen in the next week or so. This second correction wave was destined to be violent, and Bitcoin hasn’t lost the expected 30% as of yet. As such, all bets are off and there does not appear to be a bottom to bounce from.