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Bitcoin has plummeted below its previous support levels during a swift and sharp sell-off earlier this morning that led the aggregated crypto market to drop to fresh multi-month lows. BTC has continued grinding lower throughout the day and it is unclear as to where it will find any meaningful support that halts its current downtrend.
One prominent cryptocurrency analyst is now noting that it is highly probable that Bitcoin incurs further downside in the near-term, which may be driven by two critical moving averages that are “punishing” BTC’s price.
Bitcoin Plummets Below $8,000 Overnight, Sparking a Fresh Downtrend
At the time of writing, Bitcoin is trading down just under 10% at its current price of $7,500, which marks a notable drop from its recent trading range within the lower-$8,000 region – where the cryptocurrency had previously found significant support.
This negative price action today has led the aggregated crypto market to plummet, with most major altcoins mirroring BTC’s price action and dropping towards fresh multi-month lows.
Currently, Ethereum is trading down nearly 8% its current price of $160, which marks a notable retrace from its recent highs of nearly $200. Litecoin has also plummeted today, crashing a whopping 10% over a 24-hour trading period.
This latest drop came about after Bitcoin broke below the lower boundary of a bearish trading range that it has previously been caught within.
The Wolf of All Streets, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, referring to the chart seen below.
“$BTC: Seems support weakened. Nice bear flag breakdown,” he explained.
Seems support weakened. Nice bear flag breakdown. pic.twitter.com/d0k2gZKG0z
— The Wolf Of All Streets (@scottmelker) October 23, 2019
BTC May be Positioned for Further Losses
The Wolf of All Streets further noted that this latest movement downwards was not unprecedented, as BTC had been posting multiple bearish candles over the past several days and weeks that pointed to underlying weakness.
“$BTC: Looking back at the daily, there were some ugly candles at each top of this consolidation. I am in no rush to buy yet, but the daily is looking promising for a big oversold bullish divergence with RSI. If that confirms, it would be my cue to reenter,” he explained pointing to the below candle formations.
Looking back at the daily, there were some ugly candles at each top of this consolidation. I am in no rush to buy yet, but the daily is looking promising for a big oversold bullish divergence with RSI. If that confirms, it would be my cue to reenter. pic.twitter.com/0GjbYrIeKl
— The Wolf Of All Streets (@scottmelker) October 23, 2019
The next few hours and days will be critical for determining where Bitcoin will head next, as a failure for BTC to incur a relief rally in the near-term could mean that significantly further losses are imminent.
Featured image from Shutterstock.
