Bitcoin has seen some incredibly bearish price action over the past 24-hours, with the cryptocurrency losing its support at $9,500 and entering a full-blown downtrend as bears attempt to erase much of BTC’s recent gains.
It now appears to be increasingly likely that Bitcoin will see some further downside in the near-term, with multiple analysts noting that this retrace may cut deeper before BTC finds enough support to start climbing higher.
There are a few simple factors, however, that seem to point to the possibility that BTC is about to see significantly further losses, which could send it reeling to fresh year-to-date lows.
Bitcoin Plummets Below $9,000 as Analysts Eye Multiple Key Support Levels
At the time of writing, Bitcoin is trading down over 6% at its of $8,770, which marks a notable decline from daily highs within the mid-$9,000 region, and an intense drop from weekly highs of over $10,000.
The catalyst for the ongoing selloff seems to have been the cryptocurrency’s swift rejection at $10,000 that it faced this past Sunday, which seemed to confirm the bearish market structure that was developing as a result of its flash crash seen exactly one week ago. DonAlt, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that BTC is now approaching a few strong support levels, but he still anticipates it to continue declining until it reaches roughly $8,000.“BTC update: Falling knife slicing through hands left and right. Approaching interesting areas, this isn’t really the worst place to take some profits and I might close a quarter into this weekly support here. Rest is still headed for roughly 8k,” he explained while pointing to the levels on the below chart.
update:Falling knife slicing through hands left and right.
Rest is still headed for roughly 8k. — DonAlt (@CryptoDonAlt)
Approaching interesting areas, this isn't really the worst place to take some profits and I might close a quarter into this weekly support here.
These Factors Show Significantly Further Losses Could be Imminent
In addition to showing blatant signs of overt technical bearishness, there are a few factors that show Bitcoin’s yearly bottom may not be in.
Mac, a prominent crypto trader, mused these factors in a recent tweet, telling his followers that BTC’s open interest, basis, and high funding are all worse than that seen in October of 2018.“Legit boys, $6k might not have been the bottom after all. This OI, Basis, Funding is worse than Oct 2018,” he bearishly noted.//twitter.com/MacnBTC/status/79026176
Unless bulls are able to step up and catalyze a significant amount of buying pressure, it does seem that further downside is imminent.
Featured image from Shutterstock.
