- 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
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.
Here's one sign (or four) that #Bitcoin has NOT bottomed.
— Justin Bennett (@JustinBennettFX) August 18, 2022
Measured objectives from left to right:
1⃣ % objective of the double top is $13,500
2⃣ Jan-May bear flag points to $12k
3⃣ May-June flag points to $9.5k
4⃣ June-current flag point to $10k$BTC has lower to go, IMO. pic.twitter.com/mM8rQmp7bC
BTC-USD price chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Shiba Inu eyes positive returns in April as SHIB price inches towards $0.000015
Shiba Inu's on-chain metrics reveal robust adoption, as addresses with balances surge to 1.4 million. Shiba Inu's returns stand at a solid 14.4% so far in April, poised to snap a three-month bearish trend from earlier this year.
AI tokens TAO, FET, AI16Z surge despite NVIDIA excluding crypto-related projects from its Inception program
AI tokens, including Bittensor and Artificial Superintelligence Alliance, climbed this week, with ai16z still extending gains at the time of writing on Friday. The uptick in prices of AI tokens reflects a broader bullish sentiment across the cryptocurrency market.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week. This week’s rally was supported by strong institutional demand, as US spot ETFs recorded a total inflow of $2.68 billion until Thursday.
XRP price could renew 25% breakout bid on surging institutional and retail adoption
Ripple price consolidates, trading at $2.18 at the time of writing on Friday, following mid-week gains to $2.30. The rejection from this weekly high led to the price of XRP dropping to the previous day’s low at $2.11, followed by a minor reversal.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.