After an extended period of trading sideways around $8,700, Bitcoin incurred a massive influx of selling pressure that sent it reeling to its next support level at $8,400, which has held strong so far in the time since the crypto’s massive sell-off that occurred earlier this morning.
Analysts are now noting that bulls could be awakened by this recent drop, allowing Bitcoin to incur some much-needed upwards momentum in the near-term.
Bitcoin Plummets to Lower-$8,000 Region as Sellers Take Control
At the time of writing, Bitcoin is trading down over 2% at its current price of $8,500, which marks a slight climb from its daily lows of under $8,400 that were tapped earlier this morning before the crypto found enough support to slow its descent.
This price action marked the end of its extended period of sideways at $8,700, which was a level of support for the crypto following its break below its previously formed trading range between $9,000 and $9,500.
This multi-week pattern of trading sideways before dropping down to lower support levels is certainly a bearish sign for BTC, as it shows that bulls do not currently have enough strength to spark any sustainable upwards movement.
In spite of this underlying bearishness, some analysts do believe that the crypto will soon incur some bullishness.
The Cryptomist, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling her followers that she believes BTC’s RSI points to an imminent upwards break.
“$BTC: I am not all tooo focused on the falling wedge, but more on the RSI pennant. I believe this RSI breaks up! Could be little more downside before a breakup! Bulls round the corner imo,” she said while referencing the chart seen below.
Although The Cryptomist believes that Bitcoin’s RSI pennant points to an imminent bull movement, it is important to note that other analysts are pointing to Bitcoin’s break below its lower falling wedge boundary as a reason why it may soon incur further losses.
Johnny Moe, another popular cryptocurrency analyst, spoke about this in a recent tweet while pointing to the chart showing this downwards break.
The coming few hours and days may provide significant insight as to the long-term importance of this latest downwards movement, as a failure for bulls to propel the crypto higher could mean that significantly further losses are imminent.