On Thursday, Bitcoin bears continued to ravage the cryptocurrency market. According to CoinMarketCap, the leading cryptocurrency has incurred another 4% loss of the past 24 hours, falling to under $8,000 for the first time in months.
Realted Reading: No US China Trade Deal Says Morgan Creek CEO, Better Buy Bitcoin
While this devastating drop was forecasted by analysts like Peter Brandt, this move caught most investors aback, as made abundantly clear by the $550 million in BitMEX long liquidations observed on Monday.
With Bitcoin entering a brief price lull right now, you may be wondering — what BTC price level should I be watching right now?
Don’t worry, NewsBTC has you covered.
All Eyes on $7,700 for Bitcoin
To get straight to the point, $7,700 is the most important price point for Bitcoin investors at the moment. Around this level — which is nearly 50% below the $13,900 peak seen in June — sits a confluence of integral technical support levels.
These include but aren’t limited to the 200-day moving average; the 365-day exponential moving average, a level that Bitcoin bounced straight off of during mid-2017; the 50-week exponential moving average, among other levels that many say are indicative of Bitcoin’s medium-term trends.
– Strong weekly support at 50EMA and 100MA
– Closing below 7.7K, can cause a nasty dump to around 6.5K
– As long as I see a good reaction at the current support channel, I am positive we are going up from here pic.twitter.com/LJqycVtE18
— CryptoBuzz👨💻🧘♂️👨💻 (@Crypto_Buzz_247) September 26, 2019
Analyst Crypto Buzz has stated that a loss of this level is likely to cause “nasty dump to around $6,500”, a level which many believe will act as the bottom of this bull market consolidation. $6,500 is, of course, where BTC famously traded around for months on end during the middle of 2018.
Crypto Hamster has even gone as far as to say that a loss of $7,700 without a strong recovery may be a clear sign that the “bull market is over”. This, of course, might be the most dramatic of takes on the recent cryptocurrency price action.
But one thing is for certain: a loss of $7,700 may spell disaster for bulls at least for the next month or two.
Macro Trend Positive
So sure, a further unwinding of the cryptocurrency market is likely on the table. However, it is important to note that Bitcoin is believed to still be in a macro bull trend, no matter what cynics and emotional investors may be spouting on Twitter.
In fact, Mark Yusko, the chief investment officer of Morgan Creek Capital Management, recently took to CNBC’s “Fast Money” panel to only assert that Bitcoin isn’t going anywhere. He remarked:
“Look, the daily price of Bitcoin doesn’t matter. It’s been alive for ten years. Save for one year, 2015, it has made a higher lower [each and every year]; BTC’s market capitalization has grown every single year.”
The implication here, of course, is that he expects for Bitcoin’s rampant price appreciation trend to continue. Yusko went on to note that the fundamental metrics back this, citing continual growth in the number of transactions, hash rate, realized value, and more to prove Bitcoin is stronger than ever before.
Related Reading: Crypto Analyst: Under $5,000 Bitcoin Now A Possibility
Featured Image from Shutterstock