• Bitcoin price bled 10% overnight, losing FOMC-rally gains. 
  • Bitcoin price consolidation below $21,000 is a bearish sign and a sell opportunity for investors, argue analysts. 
  • Analysts argue Bitcoin is likely to extend its losses, the current flag points to a BTC bottom at $10,000. 

The crypto bloodbath is unlike previously seen flash crashes. Bitcoin price declined nearly 8% in the European session, slightly recovered its losses before resuming the downtrend. Analysts are evaluating where Bitcoin price bottom lies, as BTC nosedives to the $21,500 level. 

Also read: Will the FOMC minutes make or break Bitcoin’s uptrend?

Crypto bloodbath drags Bitcoin to a three-week low

Bitcoin price declined nearly 9% overnight. BTC hit a three-week low at the $21,500 level. The crypto market was hit by a bloodbath and a sharp decline in the European session. Bitcoin and Ethereum shed their gains from the past week, altcoins witnessed double-digit losses. 

Shiba-Inu-themed cryptocurrencies Dogecoin and Shiba Inu nosedived 15% and 13% overnight, respectively. While the reason for the crypto bloodbath remains largely unclear. Susannah Streeter, senior investment and market analyst at Hargreaves London said, 

It’s not showing the pattern of a flash crash, as the assets didn’t immediately rebound sharply but sank even lower in the hours that followed. It seems likely that this was as a result of a large sale transaction.

While Cardano was the first cryptocurrency to decline in the bloodbath, Bitcoin, Ethereum, Dogecoin, Shiba Inu and other altcoins followed. 

Analysts consider drop below $21,000 doom for Bitcoin

CryptoCapo, a crypto analyst and trader believes Bitcoin price is ready to plummet to new lows. The analyst argues that Bitcoin’s resistance is $23,500. This is an opportunity to sell the asset. If Bitcoin consolidates below $21,000, the downward trend is likely to persist till BTC price hits a new low. 

BTC-USD 4-hour price chart

BTC-USD 4-hour price chart 

Justin Bennett, a crypto analyst and trader argues that Bitcoin price has room to descend lower. Bennett has identified four likely bottoms for Bitcoin price. Currently, the $10,000 level looks like a price bottom based on the June flag point. In his recent tweet, Bennett discusses all four bottom scenarios and concludes that BTC price has bearish potential. 

BTC-USD price chart

BTC-USD price chart

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