Bitcoin shows bearish signs, correction to $8,500 likely

  • Bitcoin is trapped in a price range between $8,700 and $8,900 and is currently unable to find a clear trend.
  • The majority of analysts are drawing a bearish scenario and expect a further correction to $8,500.

After Bitcoin bounced off the $9,000 mark a few hours ago, BTC is currently in a sideways trend in a price range between $8,700 and $8,900. The Bitcoin price has dropped by 0.55% in the last 24 hours and at the time of writing trades at $8,831.25. The market capitalization is still around $163 billion.

Bitcoin trader and analyst Josh Rager describes that although Bitcoin closed above the $8,700 mark, he believes a further correction to $8,500 is very likely. If support does not hold along the $8,500 mark, a further drop in price to $8,000 or lower could follow.

Analyst “Cold Blooded Shiller” states on Twitter that Bitcoin has not yet rejected or confirmed a clear trend, so it remains open to him in which direction BTC will move. A clear break down would finally drive the bulls away and initiate a new downtrend. He advises his followers to work with smart placed stop loss orders in volatile times like the current one.

The anonymous trader “Byzantine General” states that Bitcoin is at a critical level which, in the event of a downward breakout, could lead to a sharp correction and a longer-term downward trend. He hopes for a return of the bulls, but there are currently too few new buyers that could push the price up and cause the price to rise.

A similar view is held by the anonymous trader “Teddy”. He describes that Bitcoin is at a critical level and therefore he is currently not entering into trades in the price range between $8,700 and $8,900. In his opinion, the price could fall further if BTC does not manage to close above the $9,000 mark on the daily chart. According to him, only then a bullish sentiment for Bitcoin can be maintained.

Bitcoin Trader “Jonny Moe” states that the selling pressure in the market continues to increase, as Bitcoin has not managed to stay above the $9,000 mark. The Bitcoin price is caught in a tight triangle, which could lead to a sharp drop in price to the $7,000 mark if it breaks down.

The Altcoin market continues to follow Bitcoin’s current developments and is also trending sideways. Ethereum is down 1.03% and is trades at $203.98, while XRP is recording a small gain of 0.07% to $0.19. Litecoin trades at $42.62 at the time of writing.

About Author

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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