It’s not a big secret that Bitcoin is inside a bearish period. Nevertheless, it is always worth taking notice if Bitcoin’s price drops 5% inside two hours. There may be more reasons for this. Some of the fundamental nature, but the majority of the technical origin. Still, BTC is in freefall so, let’s see why is it so and what can we expect.
Bitcoin’s steep price decline
The opening price of the 17:00 UTC candle in the BitMEX perpetual 1-hour BTC/USD chart was $8,411. That candle closed at $8,326, marking exactly a 1% decline in an hour. While this wasn’t the reason to panic, it was a good warning as BTC found itself below $8,350 for the first time since October 25th.
That support level was rather important because it used to act as a resistance prior to the recent pump. Analogically, now that the price has broken through, it may not take over the support role.
Obviously, many traders took this seriously and began selling BTC. During the next hour, Bitcoin lost almost 4% at the maximal extension of the yet unclosed 18:00-19:00 candle. That means that the price hit $8,005 at one point.
CoinSyncom’s Bitcoin Price analysis predicted the decline
CoinSyncom’s Bitcoin price analysis published on November 11th clearly predicted the current price movement. The technical aspect of our analysis clearly revealed that BTC is following one of the two covered bearish formations. Either way, the dump was imminent as no fundamental occurrence overruled the technical viewpoint.
How long this will keep up?
According to our TA team, the next support will be tested at $7,400. That may happen either today or during the rest of the week if the price stabilizes. Nevertheless, by the looks of it, Bitcoin retains the bearish sentiment visible since the mentioned pump in late October as every moving average shows that a huge sell-off is at work.
At the time of the press, the price of Bitcoin stands at $8,185 with a positive opening of the 19:00 candle.