Bitcoin price after a minor upswing above $20,000 shed some of its gains and dropped close to the lower support again. Presently, the possibility of a rebound is pretty less and hence a steep drop could be ignited that may lead the price below multi-level lows below $10,000 too. Moreover, the BTC price plunge is also substantiated by a huge bearish pattern formed at the press time.
A popular analyst Justin Bennett says a macro descending trend that may lead to the plunge below $10,000 in the coming days as it is still swinging in a bearish flag.
“There is a pattern that’s setting up now. You can see where we have a much smaller bear flag pattern that is developing..” he says, “ The objective, in this case, is right around $8500. Just above $8000,”
The analyst considered the current levels to be uncharted as the prices are hovering just above the crucial zones. The analyst drew a line off the previous cycle peak which landed in between the $8000 to $9000 area. As the asset has not faced the present macro conditions before, Bitcoin is prone to hover within an undiscovered region.
Further, elaborating more about the recent market conditions, the analyst says the current bear market is a little different. Previously while the BTC price tumbled, the other assets maintained a strong uptrend along with the stocks.
Now crypto space is witnessing a diverse trend that it had not undergone at any time in the past decade. On the other hand, the FED tightened the rates to a 40-year high, the world is facing a recession. As crypto never exists during the 2008-09 financial crisis, the present crisis may heavily impact space.
“Anything that you think you know or anything from previous cycles really needs to be thrown out the window or reevaluated significantly. Because again this is unlike anything we’ve ever seen. This is like anything we’ve ever seen,”
“ This is unlike anything we’ve ever seen before. It’s uncharted territory,”
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Source: https://coinpedia.org/bitcoin/huge-bitcoinbtc-price-plunge-is-underway-may-drop-to-8500-if-the-pattern-continues/