Sorry bulls, bears have won this time. As of the time of writing this, the price of Bitcoin (BTC) has just plunged below $8,000 after holding above that level for nearly a week. The cryptocurrency now trades at $7,930, and seemingly looks poised to plunge lower in the coming hours.
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Bitcoin Looks Weak
According to analyst Capo of Crypto, this recent drop satisfies a fractal — historical price action repeated on a new time frame — that he has been tracking for a while now. Should the fractal play out in full as the trader expects, the price of bitcoin will fall to the low-$7,000s, potentially as low as $7,000, by the end of the week. This would mark a 13% or so drop from the current price point.
Almost confirmed. pic.twitter.com/PeDhTEpCzn
— il Capo Of Crypto (@CryptoCapo_) November 21, 2019
Indeed, the market does look weak. Per previous reports from this outlet, Bitcoin closing the weekly candle under $7,900 could spell the end of the bull market. The Super Trend, “which can give you precise buy or sell signal in a trending market” by using moving averages and other simple technical indicators, suggests so.
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Bull Case Remains
While this fresh drop is painful for bulls, as the key $8,000 support is in jeopardy, Amsterdam Stock Exchange trader Crypto Michael has noted that this drop may be par for the course for BTC. He noted in the below tweet that in 2016, Bitcoin saw a similar move “with a deep retrace.” BTC satisfying this fractal will require the asset to remain above $7,800 into the end of the year.
Market is fragile.
But this is funny.
In 2016 a similar push occurred with a deep retrace after to the 0.786-0.886 fib level.
Would be nice to see a similar thing occurring now through which $7,800-7,900 would be important. pic.twitter.com/t7KIs0013D
— Crypto Michaël (@CryptoMichNL) November 21, 2019
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