Bitcoin bear market woes: BTC price drop below $21,000 could spell doom
- 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
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
