• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

Bitcoin Price Drop to $8,000 “Not a Bad Thing”; Here’s Why

Nick Chong by Nick Chong
1 year ago
in Bitcoin, Cryptocurrency news
Reading Time: 3min read
Bakkt Not Tipping Point for “Bitcoin Adoption”, CNBC Analysts Argue
Advertisement

Over the past few days, Bitcoin has been absolutely slammed by sellers. After the launch of Bakkt’s physical Bitcoin futures failed to move the cryptocurrency market, the BTC price tanked, falling off a proverbial cliff in a spectacular fashion.

Related Reading: Bitcoin, the Best Performing Asset Ever, is “Still Very Cheap”: Prominent Investor

Within the span of a day, the cryptocurrency lost support at five digits — $10,000 — crashing all the way to $8,000 in a move similar to what was seen in the depths of the 2018 Crypto Winter.

Although this move has since stopped, with BTC finding a foothold of support at $8,500, analysts have flipped bearish; traders calling for an upside breakout to $14,000 and beyond are now eyeing $7,000, maybe even lower.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

But, one analyst has stuck to his bullish guns.

In a recent tweet, Fundstrat Global Advisors’s Tom Lee argued that this $2,000 drop is “not a bad thing”. And here’s why.

No Surprise Crypto is in Consolidation

Firstly, Lee argued that it’s not surprising that Bitcoin is taking advantage of a wide consolidation pattern.

The analyst, who frequents CNBC and Bloomberg to talk up cryptocurrency, noted that the cryptocurrency is still “overbought and needs to see weaker sentiment” prior to a move higher, presumably to remain in healthy territory.

Lee specifically cited Fundstrat’s Bitcoin Misery Index, a measure meant to determine the sentiment of the average cryptocurrency investor, to get his point across. He remarked in a separate tweet that if you want to maximize your risk/reward on BTC, the Index needs to fall further, implying price needs to trend lower as well.

He added that with the S&P 500 “stuck in this ‘trendless macro’ period”, Bitcoin is likely to be without a medium-term trend as well — hence the recent price action.

#Bitcoin consolidating not a bad thing.

– it’s overbought and needs to see weaker sentiment. Our #bitcoinmiseryindex has been saying this since July.

– and it’s stuck time until S&P 500 ends this ‘trendless macro’ period.

wide range just $BTC biding time until halvening pic.twitter.com/Tl8W427Dvq

— Thomas Lee (@fundstrat) September 25, 2019

Bitcoin Still in Long-Term Range

While the Fundstrat co-founder is expecting weaker sentiment, he did assert that the Bitcoin price remains entrapped in a “wide range”, implying that the recent 20% slump is not macro bearish for BTC.

In fact, in interviews earlier this year, the Wall Street analyst has asserted that Bitcoin is likely to see a rally to $20,000 and beyond in the future. It can thus be inferred that he sees this price action as an act of bullish consolidation in a long-term price uptrend.

Lee’s comment that Bitcoin is stuck within an extended price range is reminiscent of sentiment pushed by Mike McGlone, a Bloomberg Intelligence analyst.

Per previous reports from NewsBTC, McGlone argued that with there being key support at $8,000 and heavy resistance at $20,000, the cryptocurrency could be stuck in that range “endlessly”, which he claims is a series of events that would make Bitcoin much more like gold.

Further backing his point that the cryptocurrency is unlikely to break out, he looked to the fact that once again, on-chain fundamentals — active addresses, number of daily transactions, fees, and so on and so forth — have begun to taper off like they did to trigger 2018’s bear market.

Related Reading: History Suggests Bitcoin is Currently in Early Stages of Next Bull Run

Summing up his opinion in one thought, the Bloomberg analyst concluded by stating that he believes that the price of Bitcoin is entering “an extended hibernation”.

McGlone didn’t touch on how long he expects for this phase to last, but, considering historical context, this range might be the so-called reaccumulation phase before the next BTC block reward reduction.

Featured Image from Shutterstock
Tags: bitcoinFundstratTom Lee
TweetShare18
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

bitcoin and Ethereum macro beating

Economist: Ethereum and Bitcoin Look “Bullish” After Withstanding “Macro Beating”

10 hours ago
paradox

How Paradox Group Is Helping DeFi

19 hours ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Bearish Correction Pauses: Focus Remains on Dollar and Yields

22 hours ago
Cardano, ADABTC, ADAUSD, ADA, cryptocurrency

Cardano (ADA) Death Cross Spells Worries Despite Bullish “Mary” Fork

1 day ago
oddz

Leading on-Chain Option Trading Protocol Oddz Finance Announces Its Public Distribution IDO on Polkastarter

1 day ago
Metis, DAO

Decentralized Companies Are the New Norm and It’s the DAO Revolution That’s Making It Possible

1 day ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

EcoCelium is Now Live – Ready to Mark the Next Step in DeFi

March 5, 2021

MXC Exchange Commits to Integrating USDC-SPL on Solana

March 5, 2021

Gambling Exhibition Ukrainian Gaming Week 2021: A Range of Products From Exhibiting Companies, an up-to-Date Program and a Special Offer

March 5, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Buy Silver

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.