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Bitcoin price is currently below $8,000 just days after breaking down from a multi-month triangle pattern where it was consolidating.
With Bitcoin now trading below $8,000, where could the leading crypto asset by market cap go next for targets?
Bitcoin Price Trades Below $8,000, Breaking Through 200-Day Moving Average
Bitcoin price is currently free-falling, trying to find support after it broke down from the tight trading range it has been consolidating within for the last few months.
Bitcoin price topped out at roughly $14,000 before the crypto asset began consolidating, and the market watched and waited for the asset to choose its next direction. The direction was down, and now the question is where Bitcoin might bounce, or what the ultimate target is.
Related Reading | Inverted BTC Price Chart Is Bear Market Bottom Flipped Upside Down
Crypto analyst, traders, and investors alike are all shocked by the recent bearish price action after expecting that Bitcoin would break up from the structure and proceed along its bull run. But now that Bitcoin has broken down, selling momentum is picking up and the price keeps plummeting further and further.
Not even $8,500 – a support level cited as being a prime place to buy the dip – or the 200-day going average were able to offer Bitcoin much needed support.
Bearish downside targets range from $7,000, to under $5,000, to as low as $1,000. This type of irrational exuberance isn’t uncommon in a speculative market like crypto, but most are sure that Bitcoin price will not break below its bear market bottom at around $3,100.
If for some reason it does break below, investors may begin to question the crypto asset’s long term longevity as a respected financial asset. It would also cause Bitcoin to join in the negative sentiment surrounding the altcoin market for the better part of the last two years.
Related Reading | Investor: We’ll Never See $10K Again After Next Cycle Low
Throughout the year, Bitcoin began to become considered by institutional investors as a safe-haven asset, and the ICE-owned Bakkt exchange launched this week. Neither event was able to provide the crypto-asset with the bullish boost it needed to break up from the multi-month triangle.
Realistic downside targets considering the height of the triangle pattern Bitcoin was trading in reside at around $6,800 or $5,800. However, there’s still always a chance this is a dramatic fake out, and the crypto asset could bounce back into the triangle formation, although the situation is unlikely given how strong the sell pressure has become.
Now, crypto investors will be left wondering if the bear market is back on, and fearful that the crypto asset may never recover again if it falls to new lows.
Featured image from Shutterstock
