If Bitcoin Prices Loses $7,900 on Weekly, the Bull Market May End

Nick Chong

Last Updated: June 11, 2024 8:16 am

3 mins read

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Over the past day or two, Bitcoin (BTC) has started to settle in a price range, the low-$8,000s. As it stands, the crypto market seems somewhat directionless, stuck between resistances and supports above and below its current price. However, it is important to note that Bitcoin is moving very near to a key historical level — one that may reveal if BTC is in a macro bull or bear trend.

Lose $7,900, And It’s Over for Bitcoin Bulls

Bitcoin is on the edge of a cliff, according to a key indicator anyway. The indicator in question, 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.

According to the one-week Bitcoin chart, the Super Trend baseline is currently sitting at $7,900. A weekly close under that level, according to the analyst, means that a bear market will ensue, as it will signal that the long-term bull trend has technically ended.

https://twitter.com/CTBTCTH/status/1196702328012693504

This isn’t the first time that an analyst has highlighted the importance of the Super Trend baseline. As reported by NewsBTC previously, a trader going by “Dyme” wrote that “Traditionally in a bull market Bitcoin weekly stays above ATR.”

This isn’t the only evidence suggesting that $8,000 will be of utmost importance for Bitcoin to close above in coming trading sessions. Jacob Canfield, a professional Bitcoin trader, recently took to his Youtube channel to explain why this price level does carry so much clout.

https://www.youtube.com/watch?v=l3so6BzXsnA

Long story short, according to the VPVR, a volume indicator that tells you price levels that have been historically important, $8,000 is the most-traded volume level of 2019. In fact, Canfield’s chart seemingly suggested that it is one of the most important price levels for Bitcoin of all time. “Price tends to gravitate to volume nodes; they act as support and resistance,” the analyst further explained.

Ball in Court of Bears

Unfortunately, it seems as though bears may win in pushing Bitcoin under $7,900. As warned in a NewsBTC post published just the other day, miner capitulation was nearing. And now, as noted by individuals on Twitter, it has arrived.

For those who need some more information, miner capitulation is when miners sell the BTC they earned via mining, often all at once, to keep the lights on, cash out, or to upgrade their systems for the future. This may sound relatively innocuous — of course, miners need to sell Bitcoin to fund their operational expenses — though Garner noted that it becomes a vicious cycle:

“Undercapitalized miners panic sell, price dumps, longs get squeezed, stop losses cascade — then more miners lose their lunch.”

The last time this took place was in November 2018, just days before the start of the now-infamous crash from $6,000 to $3,000.

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.