Bitcoin bears have continued to flex their muscles into Monday morning. After closing the week at a massive loss, with BTC posting its worst performance since November 2018’s capitulation event, bulls failed to make their presence known.
As of the time of writing this, the Bitcoin price has started to collapse yet again, falling as low as $7,700 after trending above $8,000 for days on end. This latest collapse, analysts say, are putting the cryptocurrency market in a precarious position — a position that perhaps may precede yet another precipitous plunge.
Bitcoin Ready to Move Lower
Ouch. Over the past 24 hours, Bitcoin has shed 4%, with bears taking control once again.
According to analyst Data Dater, this recent downturn has seen Bitcoin’s latest descending triangle chart formation break down on the one-hour chart. The measured move of this triangle is -10%, meaning that Bitcoin could sink as low as $7,000 before establishing yet another range.
Prominent analyst Cantering Clark has echoed this short-term cynicism, calling for a move to the “lows of May-June”, which are in the low-$7,000s. While he did admit that BitMEX position funding marginally favors bulls, Bitcoin is looking poised to see a further price collapse due to a number of factors.
This, he claimed, includes a lack of extreme negative funding, “increasingly negative delta at range support”, a perceived exhaustion in buying support, and large volume imbalances all implying that Bitcoin has a bearish skew heading into coming daily trading sessions.
-Funding negative but not extreme yet
-Increasingly negative delta at range support.
-Buyers already look exhausted.
-10x+ volume imbalances between bids hit versus offers lifted while progressing lower.
Bring on the lows of May-June.
— Cantering Clark (@CanteringClark) September 30, 2019
And, as Don Alt has noted, with Bitcoin’s recent loss of $9,300, the nearest support level on the downside is currently sitting in the low-$7,000s, a few percentage points lower than the current price of $7,800.
A Bounce Will Happen… Eventually
While the charts sure seem harrowing at the moment, showing that Bitcoin has further to fall, the cryptocurrency market is seemingly preparing for an eventual bounce.
Crypto Hamster recently laid out a number of reasonings why this may be. These include the fact that the Daily Fisher Transform, which indicates when the price of an asset has moved to an extreme, has hit its lowest value since 2018’s capitulation event; BitMEX funding is heading deeper negative, meaning that a bounce should arrive eventually; and a number of technical oscillators are as oversold as they were during late-2018.
— CryptoHamster (@CryptoHamsterIO) September 30, 2019
Related Reading: Can Bitcoin Bulls Fend Off a BTC Drop to $6,000? Yes, and Here’s Why
Per an analysis by Josh Rager, the lowest such a bounce may take place is $6,300, recently arguing in a chart that there exists a confluence of buying interest and historical importance.
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