Bitcoin Price Breaks Below $8,500, Are Bears In Complete Control?

Tony "The Bull" Severino

5 years ago

3 mins read

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Following the crypto asset’s historic 40% rally at the end of October, the leading cryptocurrency by market cap is once again bearish, and Bitcoin price has now broken below $8,500.

Are bears back in charge completely, and if so, how far can Bitcoin price drop from here?

Bitcoin Price Falls Below $8,500, Can Bulls Defend Once Again?

This morning, Bitcoin price broke below $8,500 for the first time in November 2019, suggesting that bears are back in control.

Bulls had a valiant defense of the low $7,000 range, resulting in a massive short squeeze and the crypto asset’s third-largest one-day gain on record, following news that China would support blockchain technology.

But any bullish momentum from that powerful impulse move has fizzled out, and the crypto asset has slowly bled from an October high of $10,500, to now below $8,500 in this latest drop.

Below current prices, the next levels that may act as support for Bitcoin price would be at $8,200 and $8,000. If $8,000 fails to hold, and Bitcoin breaks down into the $7,000 range, the first-ever cryptocurrency may be at risk of falling even lower into the $6,000s.

During late September and early October, Bitcoin price made repeated attempts to break below $7,000, and the buying power in that range may already be exhausted, which could make room for a deeper drop to occur.

November To Remember: Could Miner Capitulaton Be Behind the Dangerous Drop?

Last year around this time, Bitcoin price plummeted through support at $6,000, eventually falling another 50% and bottoming out around $3,150. The dangerous decent caused Bitcoin miners to capitulate, selling off whatever assets they could in order to sustain operations.

With Bitcoin’s cost of production ever-increasing, a fall below the current range could cause miners to capitulate once again – almost exactly one year since the last time this occurred.

Bitcoin spent most of 2019 extremely bullish, and a safe-haven asset narrative combined with a front-running of the asset’s upcoming halving, unfortunately, wasn’t enough to sustain bullish momentum over $10,000 and spark the FOMO the important price level was expected to.

A change in the regulatory climate this year may have caused bullish crypto investors to rethink their investments, and declining trading volume across spot exchanges suggests fewer and fewer people are interested in the emerging asset class.

Only time will tell if the current downtrend is simply a correction before Bitcoin continues on a bull run – what most of the cryptocurrency community believes is already underway since early 2019 – or will fall deeper into a bear market, making the parabolic run in 2019 nothing more than a massive bull trap and bear market rally.

Featured image from Shutterstock

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.