Bitcoin Plummets to $7,000s: These Factors Show Where BTC is Heading Next

After six days of gains, Bitcoin (BTC) experienced a precipitous drop on Wednesday, tumbling from the multi-week high of $8,460 to $7,800 in a few hours’ time. While the drop was extremely steep — 8% in literal hours — prices have remained around the high-$7,000s since, leaving many to ask what’s next for the crypto market.

Remain in Control of Bitcoin, Say Analysts

Although some are fearing the worst after the 8% drop, a number of prominent traders are keeping their heads up high.

Dave the Wave, the prominent cryptocurrency trader who called Bitcoin’s decline to $6,400 literal months ago, noted that the cryptocurrency is looking prime to “consolidate back to the $7,000-odd [range], adding that most data he sees that a macro bottom was established for the cryptocurrency.

Also, Financial Survivalism, an analyst that called this latest surge a week or so ago, noted that per his Wyckoff analysis, BTC is likely to consolidate into this range before blasting towards $9,000, thus fulfilling a textbook Wyckoff Accumulation pattern.

Not to mention, Bitcoin’s long-term fundamentals remain decisively intact. At the turn of the year, Bitcoin’s hash rate  — the measure of computational power processing BTC transactions — hit a new all-time high on the 1st day of 2020. The all-time high, 119 exahashes per second, or 119 with 18 zeroes after it.

This came shortly after TradeBlock, a cryptocurrency research and data firm, revealed that 2019 was a record year for the Bitcoin network in terms of transaction count and the value of coins sent denominated in USD value.

$8,400 Was Key for Bulls

While bulls are confident, it is important to point out that $8,400 was an extremely key level from a short- and medium-term perspective, meaning that the swift rejection from that level may be bearish.

Josh Rager, a prominent cryptocurrency analyst and industry investor, for instance, pointed out that $8,400 has been a key level of and resistance for Bitcoin over the past few months. The fact that BTC failed to regain that level on any notable time frames is, according to Rager, a sign that we are “not out of the bear woods yet” meaning that investors must take Bitcoin trades “level by level, day by day.”

$8,400 is also where Bitcoin’s 20-week simple average lies, which is a moving indicator that has been key in indicating macro reversal points for BTC over the past 18 months. On the matter, an analyst going by The Moon wrote:

“This moving average has historically marked VERY important turning-points for Bitcoin, both bullish and bearish. A rejection here could lead to a break below $6,000. If broken, BTC could reach $9,450 quickly!”

Also, Teddy noted that $8,400 was also a subjective diagonal resistance level and a 200-day exponential moving average, further adding to the bearish thesis.



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