It’s never easy to write an update on Bitcoin price and the cryptocurrency market, especially when a move is expected soon and it’s difficult to keep up on the value.
At the time of writing, BTC broke the $8,000 support level and it’s fair to say that anything can happen in the next few hours. Volume is within a standard range of $16B.
Let’s try to understand why a break is expected, with a likely downtrend predicted by many.
Technical analysis might very well be wrong but in most cases, it offers a perfect perspective of what might occur in the short (or long) term.
The overall market sentiment and most analysts are currently prone toward a bearish trend. This is mainly for the following reasons:
- On 25th September bitcoin price broke $9,000 support level again but this time around it has not recovered since. Actually, the opposite happened and recorded a steady descent to the current $8,000 level. This is a bearish signal.
- On 11th October there was a false break out with Bitcoin price suddenly going back up to the $8,800 range, letting most hope that it could be a nice reversal. But It was not. The coin dropped in the immediate aftermath plunging back down to the $8,300 on day close.
- Bollinger bands are tightening on multiple time frames.
They consist of a centerline and two price channels (bands) above and below it. The centerline is an exponential moving average; the price channels are the standard deviations of the stock/cryptocurrency being studied. They have not been so tight in a while and this, combined with the bearish sentiment, enhances the chances of further drops.
Altcoins are subsequently in the red as well with Ether (ETH) losing the $180 support level again.
BNB Binance coin and EOS are both down 5-6% in the last 24 hours and a downtrend is recording TRON (-9.30%) and ADA (-7.20%) as well.
Overall market cap is showing signs of a bearish trend too, down from $225B to $216B in the last 24 hours only.
Major cryptocurrency online publication Cointelegraph has also called the current state of the market as an “ugly scenario” for the bearish predictions raised by many experts.
The top cryptocurrency, though, does not care much about predictions and most of the time behaves in the most unexpected ways.
Will it also be the case this time around?