What started out as a positive week for bitcoin has turned bearish again as the world’s top digital asset plunged below $8,000 yet again. A few hours ago BTC wiped out its weekly gains and the big move that many have predicted may just have initiated.
Bitcoin Price Back Below $8k
The purge initiated a few hours ago and accelerated during today’s Asian trading session with a dump to $7,920 according to Tradingview charts. It has made this move five times already this month and clearly cannot break resistance at $8,300.
BTC price hourly – Tradingview.com
The good news is BTC is still within its range-bound channel and has yet to fall through monthly support at $7,800. However, the big question is; will it continue to slide or regain composure above $8k again?
A drop below $7,750 is likely to induce a larger dump down to a new price floor. Previous price areas in the first shoulder of this large chart pattern were at $7,450 and $7,000 so those are likely to be the next targets for any major downwards movement.
Trader and analyst, Josh Rager, has been adding up the technical indicators and they are all bearish. Yesterday he commented on the Bollinger Band squeeze that has previously led to further downsides, while today he looked at historical volatility.
As you can see with not only Bollinger bands but also historical volatility (HV) that a major move is brewing. With a slow sideways market, we’ll see descending HV that indicates a strong reaction in price action ahead and rise in volatility
As you can see with not only Bollinger bands but also historical volatility (HV) that a major move is brewing
With a slow sideways market, we’ll see descending HV that indicates a strong reaction in price action ahead and rise in volatility pic.twitter.com/kee1IkjKBB