This morning Bitcoin’s price has dropped below $ 8,000 and is currently teetering on the support line – which could be the last support for bulls in this range before new lows are reached.
But all is not lost to the bulls, and if Bitcoin buyers can raise the price of their main crypto asset beyond a key resistance level, the bull market may be back. Otherwise, falling even deeper to find new support will be the end result.
Bitcoin Price: Bear Flag Can Bring crypto Assets to $ 7,000 Unless Bulls Recover $ 9,000
Following Bitcoin’s bear market, FOMO helped raise Bitcoin’s price to $ 14,000, bringing investors up to a high gain of up to 350%. But once the main crypto by market cap arrived there and failed to reach a new high, buying momentum diminished and interest practically disappeared from the crypto market.
This can be seen by significant declines in turnover and falling asset prices. After rallying to $ 9,000, Bitcoin’s price was halted and forcefully rejected at about $ 8,800, causing the price of the first cryptocurrency to plummet back to $ 8,000.
This morning Bitcoin momentarily broke below $ 8,000 and is now trading at the critical support level. If breached, bears may push the Bitcoin price down to support the levels below.
Bitcoin appears to be consolidating within a bear flag on its daily price charts and, if confirmed, could spell disaster for bullish crypto investors. Goals for falling below current prices range from $ 6,800 to $ 7,400 as the next zone in which a jump could likely occur and a new trading range is established. Otherwise, the February 2018 low of $ 5,800 could be tested.
In the chart below, the bearish scenario shows Bitcoin falling from bear flag formation to above support levels.
Also pictured is a bullish scenario, where if bulls can reclaim the powerful support turned resistance level between $ 9,000 and $ 9,600, a return to the bullish race before the end of the year is possible. Any upward movement would be the result of one of the two remaining diagonal trendlines drawn from Bitcoin’s bearish market bottom as support.
The bearish scenario causes Bitcoin to fall below the largest of the two trendlines and if this occurs, bulls will need to hope for the final diagonal support to remain uninterrupted or the crypto asset could return to the bearish market bottom or, potentially set a new, lower low.
For now, the price of Bitcoin continues to trade at around $ 8,000, and how it reacts to $ 7,000 below or $ 9,000 above will be the key to cryptocurrency’s future.