Bloody Day 24.09.2019. Bitcoin recovering after fall below $8,000
Bitcoin has finally broken below the support line of the large descending triangle it has been carving out for months
Bitcoin (BTC) is showing cautious signs of recovery after a dramatic drop that saw it briefly dip below USD 8,000 on some markets – with many altcoins also reeling after sudden price falls.
Some observers have pointed out that the BTC drop coincided with a massive liquidation of over USD 600 million at the BitMEX exchange platform, with statistics from Datamish confirming the movement.
Bitcoin’s drop was nothing if not sudden, sliding from the USD 9,500 mark at 18:30 UTC and falling to just over USD 8,200 within the space of just over an hour. Since then, BTC’s price has been climbing relatively steadily, though, with the price currently at USD 8,660 at the time of writing.
Altcoins also took a battering, with tokens such as ethereum and EOS dropping by almost 20%.
Stockbroker, financial commentator, and gold proponent Peter Schiff’s disdain for bitcoin is well known. The gold bug hasn’t held back in his criticism of the flagship cryptocurrency, calling it a “Ponzi Scheme” earlier this year. He now seems to be taking sadistic pleasure as the price of bitcoin is crashing, and he is rubbing it into crypto bulls with a gloomy price forecast.
«Bitcoin has finally broken below the support line of the large descending triangle it has been carving out for months. This is a very a bearish technical pattern, and it confirms that a major top has been established. The risk is high for a rapid decent down to $4,000 or lower!»
Should you believe this view?
Bitcoin’s latest crash was predictable. The market-leading cryptocurrency was indeed making a bearish technical pattern, and analysts had predicted that its next level of support in case of a crash would arrive at $8,500.
The price hit those levels yesterday, but it has fallen further as of this writing to just over $8,300. The fall of bitcoin’s price below the key support level of $8,500 can be attributed to the muted launch of the Bakkt futures trading platform earlier this week. This dealt BTC a psychological blow as Bakkt’s launch was supposed to boost institutional adoption of the cryptocurrency.
But it is still early days and the situation seems to be changing already. Data from Bitwise suggests that spot bitcoin trading volumes in the past 24 hours have exceeded $3 billion, a substantial jump over the $500 million daily trading volumes that were recorded toward the beginning of September.
So if institutional demand comes back into play, the knee-jerk reaction that has led to bitcoin’s latest crash should subside and the price can recover once again. This is why bitcoin bulls should not be discouraged by Schiff’s view that the cryptocurrency is heading to $4,000, as the possibility of a turnaround still remains.