Well, folks, Bitcoin (BTC) has just plunged by around $500 in a matter of minutes for the seeming umpteenth time in a matter of weeks. As of the time of writing this, the cryptocurrency is trading at $9,500, as it has found itself down some 2.5% in the past 24 hours. Altcoins are posting similar losses in terms of percentage points.
According to Mohit Sorout, a cryptocurrency investor and analyst, a loss of $9,500 on the four-hour chart, whose candle is closing in about an hour, will not bode well for short-term price action. In fact, Sorout suggests that should close a four-hour candle under that level, he would be inclined to suggest that Bitcoin will see $8,600 “fast” — whatever that means. But, he went on to note that he has “sizeable bids there”, hinting that he is expecting for BTC to bounce once it starts to flirt with that range.
Sorout’s expectations line up with those put forth by Mike Novogratz, the chief executive of crypto merchant bank Galaxy Digital. As reported by Ethereum World News previously, the former Goldman Sachs partner notes that he expects for a healthy consolidation, with $8,500 being the key price point to watch over the next few weeks. He claims that this level, which is where the closest CME gap is, should act as a low in this move lower.
So, from a technical standpoint, is BTC currently showing weakness? Per Bitcoin Jack, the lead analyst at Bravado, it sure is. In a recent tweet, he wrote how “demand is getting exhausted quickly and something bigger is coming”, seemingly implying a move lower.
A lot of other analysts commenting on this rapid spike lower shared the sentiment of the two analysts above, noting that for now, the chart for Bitcoin doesn’t look bullish per se.