Bitcoin and the aggregated crypto markets have been facing an extension of the significant downwards pressure that they first incurred last weekend when BTC sharply moved to just over $11,000 before it reeled down to its current price levels.
Now, analysts are noting that Bitcoin has broken through multiple parabolic trend lines that it had formed during the course of its recent bull run, which could signal that significantly further losses are imminent.
Bitcoin Breaks Below $10,000 as Bears Celebrate
At the time of writing, Bitcoin is trading down roughly 1% at its current price of $9,900 but is down significantly from its daily highs of $10,200 that were set yesterday.
BTC’s one-week price action paints a grim picture for the cryptocurrency, as it is currently trading down significantly from its seven-day highs of $11,000 that were set this past weekend, which sparked this latest sell-off.
Bitcoin’s inability to move above $11,000 set a lower high for the cryptocurrency and marks a significant extension of the downwards pressure that was first incurred when its price sharply moved to highs of $13,800 in late-June.
Importantly, analysts do believe that Bitcoin will continue to face further selling pressure in the near-future, with Chonis Trading, a popular cryptocurrency analyst on Twitter, explaining that he believes the crypto could soon drop towards $9,000.
“$BTC A measured move from the completion of this bear flag would take #bitcoin down to $9K area,” he said while referencing the below chart.
$BTC A measured move from the completion of this bear flag would take #bitcoin down to $9K area… pic.twitter.com/k47UBFSMhJ
— Big Chonis Trading? (@BigChonis) July 24, 2019
BTC Continues Crashing Through Parabolic Trend Lines as Selling Pressure Flourishes
During the course of Bitcoin’s massive bull run that sent it from lows of $3,400 to highs of $13,800, it formed multiple parabolic trend lines that mark important levels of support for the cryptocurrency.
Chonis Trading also spoke about these trend lines in a recent tweet, explaining that it has already broken through two of these trend lines, and is currently pushing up against a third one.
“$BTC – flirting with losing its third parabolic advance line,” he said while referencing the five parabolic trend lines seen below.
$BTC – flirting with loosing its third parabolic advance line #bitcoin pic.twitter.com/SYMJSVlkVY
— Big Chonis Trading? (@BigChonis) July 24, 2019
Although it will likely take some time before Bitcoin touches the fourth and fifth trend lines in the above chart, in theory BTC could drop as low as $4,400 while still maintaining a wide parabolic formation.
As long as the crypto continues to hold above the mid-to-upper $9,000 region, however, it may be able to hold above the third trend line, which could lead it significantly higher in the near-future.
Featured image from Shutterstock.
