Sorry bulls, bears won’t give you any reprieve. On Tuesday, Bitcoin (BTC) continued to tank, perpetuating a downward trend established on Monday after the cryptocurrency fell from $7,150 to $6,800 in the span of a few minutes.
Related Reading: Bitcoin Futures Gap Exists at $11,800; Can Bulls Fill the Gap?
As of the time of writing this, the cryptocurrency is trading at $6,600, just a percent or two above the local lows of $6,500. BTC is down 4.5% in the past 24 hours, actually outperforming a majority of altcoins due to the centralization of cryptocurrency market wealth in Bitcoin. The drop is a continuation of the drop yesterday.Bitcoin Nears Key Support Levels
As (?) LoomDart, BTC has, with this latest move lower, reached a key downtrend, which acted as support in the drop to $7,300 seen in October and the $6,600 drop seen late last month. The trader suggests that BTC needs to bounce here, or “else it’s toast.”watching here for a bounce or it's toast — loomdart – Holy War Arc (@loomdart)
Further to Fall?
While Bitcoin may be reaching a key support level, some believe that the cryptocurrency still has a large amount of downside potential.According to a a professional cryptocurrency trader, Bitcoin is not yet near a macro bottom in his eyes. He remarked that the cryptocurrency is likely to see a 15% drawdown from the current level of $6,600 to $5,500, for there is where the 0.786 Fibonacci Retracement of the rally from $3,100 to $14,000 lies.
Canfield’s analysis that a move to $5,500 could be had corroborates a similar thought from trader CryptoBirb, who noted that Bitcoin still is likely to see one final dump to $5,400-$5,600, which he also pointed out coincides with the 0.786 Fibonacci.
Birb added that this drawdown would validate a trend seen in previous market cycles, which saw BTC see a short-term bearish though macro bullish throwback to key support prior to a resumption of a parabolic uptrend.Featured Image from Shutterstock
