I’ve said it once and I’ll say it again: Bulls really can’t catch a break. Over the past few hours, Bitcoin has continued to tank, building on the drop to $9,300 that already transpired on Tuesday morning.
As of the time of writing this, the leading cryptocurrency is trading for $9,125, down 4% in the past 24 hours and 13.5% below the $10,550 high seen around ten or so days ago, per data from CoinMarketCap.
This latest leg lower has liquidated another $8 million worth of BitMEX long positions, with traders crumpling as Bitcoin shows no signs of its rapid descent towards $9,000. These liquidations add to the dozens of millions of dollars worth of long positions wiped out over the past few days as BTC bulls have collapsed.
While many traders were in denial over the past few days, many are now convinced Bitcoin is in the midst of a fully-fledged bearish reversal, one that will likely take the cryptocurrency lower than $9,100. But, at which point will the asset bottom?
Analysts Explain Where They Think Bitcoin Will Bottom
Analysts are currently divided over the answer to the above question. Though, the general consensus seems to be somewhere in the low-$8,000s to the mid-$8,000s.
Filb Filb — the pseudonymous trader that called all of Bitcoin’s price action in Q4 of 2019 and the subsequent recovery into 2020 — recently shared some insight into the drop in his Telegram channel, writing (slightly edited for clarity):
“Downside targets [of] the 200-day moving average, 20-week moving average, and 50-week moving average seem good for a bounce, but the 200-day moving average is never really lost in a bull run, so losing that could be more of a significant issue. Nevertheless, I’m looking for longs down there.”
For some context, the 200-day moving average is around $8,800, the 20-week moving average is at $8,500, and the 50-week moving average is around the same as the 20-week for Bitcoin. (This data was taken from TradingView’s XBT chart.)
Jonny Moe has been a bit more bearish than Filb Filb, recently suggesting that $8,000 seems an obvious place for Bitcoin to bottom, though added that this price point is likely to be front-run around $8,200. He added that he expects for this drop to take place over the course of a month, rather than a flash crash lower before a resumption of a bull trend.
Pretty clear now that was indeed the near term top. Next question: how low?
This isn't a novel idea, but $8000 seems really obvious. So obvious in fact, that I wonder if we make it there.
Will not be shocked to see us fail to reach it, maybe $8200ish. https://t.co/1tD5YB7upC
— Jonny Moe (@JonnyMoeTrades) February 26, 2020
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