Bitcoin Price Breaks Below $9,000, Historic Rally Now In Jeopardy

Tony "The Bull" Severino

Last Updated: June 11, 2024 8:03 am

3 mins read

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Two weeks ago, Bitcoin price set a record for its third-largest 24-hour gain in the young asset’s short history, rocketing from $7,400 to $10,500 from low to high.

After weeks of consolidation, the crypto asset has run out of steam and has begun to fall, first breaking below support at $9,000 where it is currently trading. Can bulls push Bitcoin price back above support and make a push higher, or will bears regain control and potentially set a new local low?

Bitcoin Price Finds Itself In Another Descending Triangle, Breakdown Begins

This morning, after weeks of indecision and ping-ponging between a tightening range, the first-ever crypto-asset finally appears to have made a decision on its direction in the short term and has fallen below support at $9,000.

Once again, Bitcoin may have found itself trading within a descending triangle pattern – a pattern that has repeatedly spelled disaster for the crypto asset throughout the bear market. The pattern, which makes lower highs but similar lows, on lower timeframes finally gave way, and Bitcoin price has started to fall.

If the pattern is indeed a descending triangle, the resulting breakdown could bring the crypto asset back to local lows, or potentially lower, reaching the bottom of a multi-month channel Bitcoin has been trading within.

Possible Bull Flag Formations Could Save Crypto Bull Market

All hope isn’t lost for bulls just yet, even despite today’s drop. The powerful rally also could have been the flag pole in a massive bull flag that is forming. Bull flags typically make lower highs and lower lows, before eventually once again taking bears by surprise with a quick break above resistance.

If Bitcoin price can find support at current levels – roughly $8,800 – it could suggest that the pattern is actually a bull flag and not a descending triangle, with a target of over $11,000.

A move toward $11,000 or above would set a new higher high, and would likely restore the confidence of bullish crypto investors and support the theory that Bitcoin’s next bull run is beginning.

If not, the historic rally may be almost entirely erased, and a deeper drop would be likely. However, it still wouldn’t mean that Bitcoin’s chances for a bull market are completely lost, as even a deeper drop into the current multi-month channel would still be within a larger bull flag formation on monthly Bitcoin price charts.

The target of the bull flag on the monthly price chart, would be a new all-time high. Once Bitcoin broke above its former all-time high in 2017, the true bull run really began – ultimately making Bitcoin and crypto household names and taking the asset to its all-time high of $20,000.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.