After a brief period of consolidation within the mid-$8,000 region, Bitcoin’s bears have once again prevailed over bears, sending the crypto reeling as low as $8,000 before it found some support that helped its price climb back towards $8,300.
This sell-off has opened the gates for significantly further losses for the embattled cryptocurrency, and analysts are now noting that Bitcoin may see significantly further losses as it moves to fill its closest CME gap at just over $7,100.
Bitcoin Reels Lower as Further Losses Loom on the Horizon
At the time of writing, Bitcoin is trading down just under 5% at its current price of $8,300, which marks a steep sell-off from its recent highs of $8,700 that were set earlier today just prior to the increase in selling pressure that pushed the crypto down to its recently established multi-week lows.
BTC did find significant support at $8,000 however, as this is where its price immediately bounced during the recent sell-off, leading to the formation of a relatively large wick that may favor bulls.
Assuming that Bitcoin continues to face further selling pressure, it is highly probable that it will drop until it fills its CME gap that currently exists at $7,185.
The Cryptomist, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, explaining that she anticipates BTC to tap this level before it finds enough support to catalyze another rally.
“$BTC: Bringing back the 3day wedge drawn few weeks ago. Thought we would have one last fakeout before descend to support. Support touch would see 4hr 7185 CME gap filled,” she explained.
Importantly, this latest drop did not fundamentally shift Bitcoin’s market structure and its bulls were able to defend its long-foreseen support level, which may mean that bulls will begin stepping up at this level.
Hsaka, a popular cryptocurrency analyst on Twitter, spoke about this level in a recent tweet, saying:
“$BTC: Your destination has arrived to the dollar. First swing trade I’ve taken in a while. Compounded the position on the OI wiping rallies into previous support. Continuous normalized funding + the weekend had me on edge for a bit, but we never broke market structure,” he said while pointing to the chart seen below.
How Bitcoin responds to this support level will likely determine whether or not it moves lower until it fills its CME gap in the lower-$7,000 region, or if significantly further losses are imminent for the cryptocurrency.