Bitcoin Price Breaks Below $8,300, Is The Bull Rally Already Over?

Tony "The Bull" Severino

5 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin price has been falling over the last 24 hours, potentially signaling that the recent bull rally has come to an abrupt end.

But what are the factors behind Bitcoin’s latest drop, and how far might the crypto asset dive before it finds support?

Bitcoin Price Inches Below $8,300, But Is There Much Further to Fall?

The leading cryptocurrency by market cap has spent the last six months locked in a downtrend. However, that downtrend was considered broken by many during the recent bull rally in Bitcoin, causing many to expect at least a short-term uptrend to follow.

And while Bitcoin price did rise as much as 35% in less than 30 days, it failed to break through overhead resistance and reclaim past highs.

Now, as of this morning, Bitcoin price pierced through $8,300 temporarily after a more than $400 selloff began in the late-night hours.

The crypto asset is back above $8,300 currently, however, it is not until prices much lower where Bitcoin could find support.

The drop in price is surprising for many, but there may be a variety of factors influencing the bearish movement.

Factors Behind Today’s Crypto Market Crash

Notably, Bitcoin price failed to break above the 200-day moving average, which may have signaled to larger investors that the crypto asset wasn’t yet for a new uptrend, and started to sell the asset to reduce risk.

Bitcoin price may be headed back to retest the 50-day moving average, which is currently sitting at around $7,500.

Before it reaches that key level where support could be found, the cryptocurrency is likely to test support levels at $8,000 to $8,200, then lower at $7,600 to $7,800.

The leading cryptocurrency by market cap must not fall back below $7,400 where the inverse head and shoulders breakout confirmed, or else a new low could be set in the days following.

With Bitcoin’s halving ahead, and after two full years of bar market, it could be on the verge of a major breakout. But for that to happen, the 200-day moving average must be taken, with multiple daily closes above it along with a retest of resistance turned support.

In the worst-case scenario, the current top could follow the path of the July 2018 rally, which eventually led the cryptocurrency to reach its current bear market low of $3,100.

Breaking down to set a new local low, could cause the market to panic, and a retest of the lowest ranges over the last two years may need to be tested and confirmed as support for an uptrend to begin again.

Featured image from Shutterstock, Charts from TradingView

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.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

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.