At long last, Bitcoin (BTC) has begun to slip after trending in the mid-$8,000s for days on end. In a move expected by a number of analysts, BTC has dropped to $8,100 on most major crypto exchanges.
In the past 24 hours (according to Coin Market Cap), the cryptocurrency is down 5.80%, as a number of altcoins, save for Bitcoin Satoshi’s Vision, Cosmos’s ATOM, Crypto.com, have posted similar or worse losses. Despite the rapid spike lower though, there’s purportedly still hope for bulls, barring that a specific level can be held in the coming minutes.
Bitcoin Needs to Reclaim $8,200
According to most analysts, Bitcoin needs to reclaim the key $8,200 price level in the coming hours, as that is where BTC topped out multiple times last month. Per a recent tweet from analyst Josh Rager, bulls need to reclaim $8,203 to close the daily candle, or else “continual downward price action [to] the high $7,000s” could be seen in the coming days.
$BTC Bulls need to push back and close above $8203
This is a nasty candle on the daily chart
Closing below $8200 will likely lead to continual downward price action in the high $7ks for now pic.twitter.com/AE9zAgzoZK
— Josh Rager 📈 (@Josh_Rager) June 3, 2019
Indeed, as others have explained earlier on Monday, $8,200 has acted as a key resistance not only during Bitcoin’s recent swing higher but during mid-2018, which was when the cryptocurrency tried to break from the vise of bears.
If $8,200 is not held, however, analysts expect crypto’s short-term prospects to get messy real quick. Per previous reports from NewsBTC, Josh Olszewciz of Brave New Coin postulated that when the pullback arrives, it will be serious and harsh. He recently noted that Bitcoin is currently trading in a rising wedge pattern, which, if not broken above, can act as a catalyst for a bearish trend reversal.
What’s more, Olszewciz points out that there have been bearish divergences between Bitcoin’s price, and the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). In other words, as BTC has moved higher over the past two weeks, these indicators have trended lower.
No matter where Bitcoin heads in the coming weeks, the crypto market is still decidedly in a bull trend. Rager recently claimed that the Super Guppy, an indicator that singles out overarching trends, has flipped from red to grey on Bitcoin’s one-week chart, just as the same technical signal flipped from grey to green on Bitcoin’s three-day chart.
This occurred when BTC pushed past $7,000 just weeks ago. While the one-week Super Guppy isn’t green yet, signaling a clear uptrend, Rager notes that Guppys are “lagging indicator”, meaning that the change from red to interim grey makes for a “strong confirmation” of a bull trend.
Featured Image from Shutterstock. Charts Courtesy of TradingView.com