- Bitcoin has crashed below the key support and the price has officially broken below $7,852.
- Strong probability of a sharp Decline of 20% or more from current levels especially after BTC/USD closed at a 4H candle below it.
- Bitcoin Likewise Broke Underneath its 0.786 Fibonacci retracement level.
Bitcoin has crashed below the key support and the price has officially broken below $7,852 which is the 38.2% fib extension level from December low to the yearly high. This is extremely bearish and is a massive development for Bitcoin.
It has been predicted that there is a strong probability of a sharp decline of 20% or more from current levels especially after BTC/USD closed at a 4H candle below it. Due to such a sharp decline, the price is expected to drop down to at least $6,717.
Over the past week, BTC/USD has faced a slow decline down to the $8,000 price level. Bitcoin likewise broke underneath its 0.786 Fibonacci retracement level too — its last significant level before an affirmed full backtrack of the Oct. 25 convention to $10,500. On the off chance that Bitcoin falls further beneath $7,307, it might show its bullish swing up to $10,500 on Oct. 25 was an accident, bringing about net sideways activity for as far back as the month.
Furthermore, a bearish outlook might even see BTC’s recent $10,500 upswing as a significant bullish correction albeit in a continuation of a general downward trend. On a bullish note, nonetheless, Bitcoin didn’t yet break the past low and ricocheted with a reasonable piece of solidarity from $7,390 up to $7,640.
BTC/USD has already begun its downtrend whereas the EUR/USD forex has climbed above the 38.2% fib extension level and is aiming to go further upside.
There would be a strong probability of BTC/USD breaking below the descending channel during the next downtrend if EUR/USD starts to decline as well and ends up breaking below the 61.8% fib extension level. A sharp decline is expected to take into consideration the fact that Bitcoin is at a very vulnerable stage.
The ETH/USD chart points to a further decline. In fact, Ethereum (ETH) could fall a lot harder than Bitcoin (BTC) and might decline down to $144 or lower before it can arrange for temporary support.
Market analyst Keith Wareing meanwhile anticipated the drop, shorting BTC to the $7.4K level, and then immediately taking a long position.
“Decided that shorting to $7,350 was the logical move after the support on the Bollinger Bands was broken on all major time frames,” said Wareing. “If $7350 wasn’t to hold, Willy Woo and Tone Vays would be right, and as there are no pigs in the sky or ice in hell, I knew it was the bottom.”
The S&P 500 (SPX) appears to be getting closer to a correction which does not translate into good news for the cryptocurrency market. The index has closed below the 5 days EMA for the first time since the beginning of October.
This is bearish progress for the stock market itself which further affects the bearish development of emerging markets like the cryptocurrency market, for example.
There is further opportunity for Bitcoin Dominance (BTC.D) to rise whereas Altcoin Dominance (Others.D) is on the verge of a decline after having faced a strong rejection at the 200-day moving average. Overall, all these developments point to the glaringly obvious and inevitable decline of the cryptocurrency market in the near future.
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