Bulls, unfortunately, are getting no reprieve. The Bitcoin (BTC) price is the past hour has collapsed under $8,000 for the first time in months, marking yet another blow to bulls in this market.
According to crypto analyst Joseph Young, this latest move has led to liquidations of $77 million worth of Bitcoin long contracts on BitMEX, adding to the $550 million already liquidated earlier this week. Ouch.
Another $77 million worth of bitcoin long contracts liquidated on BitMEX today. Very intense week.
As of the time of writing this, Bitcoin is trading at $7,750, having shed another 5% in the past 24 hours. Altcoins have collapsed even further, bleeding out as traders seek relative safety in BTC.
Bitcoin Testing Key Levels
With this latest downturn, Bitcoin is now “attacking” the 100-week simple moving average, according to analyst Crypto Michael. He notes that this level has only been encountered once in the previous bull run, in January 2016 during the earliest stages of the last cycle.
Michael wrote that if this moving average is lost, he expects a further 7% drop to the $7,300 region, where he claims there is a CME futures gap.
This move also brings BTC to a key Bollinger Band level. Per previous reports from NewsBTC, Bitcoin’s one-week lower Bollinger Band currently sits at $7,700.
This level has never been lost in a bull market, leading analyst Crypto Hamster to suggest that a close under this level could mean “this is not a bull market any longer”.
Continued Move is a Given
Still, the continuation of this week’s price collapse is supposedly a given.
Prominent trader Hsaka noted that “whenever price breaks a multi-month support or resistance”, which Bitcoin did earlier this week when it lost the support of $9,500, “it usually sees a continuation in the direction of the break”.