Bitcoin (BTC) Price Drops Below $7,600, Bears Looking to Break $7,500 USD
- Bitcoin drops but still at 10 months high
- BTC in condensing formation and held by horizontal supports, says crypto trader
- “The bears simply want to see a bear flag and the 7500 breaking”
In the past 24-hours, the Bitcoin price has dropped 4 percent as it fell down to $7,535 level at one point today.
Just on the weekend, Bitcoin price recovered to $8,100 and then went to about $8,300 this week. However, as we reported, Bitcoin has been in a diamond pattern that meant it could go either upward or downward and for now it has chosen the direction as it drops down.
Despite this, BTC price is still at 10 months high as at the time of writing, BTC/UD has been trading at $7,561. In tandem with the leading cryptocurrency, altcoins took a drastic drop, with the top cryptos down 6 to 10 percent and total market cap sliding down to $237 billion.
Bitcoin's weekly low thus far is a bounce off the *top* side of the upper Bollinger Band. Not a very common occurrence. pic.twitter.com/ySm4CKl3jT
— Ledger Status (@ledgerstatus) May 22, 2019
As for now, “BTC still in this condensing formation and held by horizontal supports,” says crypto trader and investor Josh Rager. He says currently, the formation is neither bullish nor bearish. The price is just condensing and a “volatile move” is expected to follow.
According to him, the area between $7,200 and low $7,300 is the buy zone with daily and weekly support. Moving below this, if Bitcoin breaks $7,000, Rager says it will go to at least low $6,000 and could even further fall back to heavy support area near $5,500 and $5,700.
— fil₿fil₿ (@filbfilb) May 22, 2019
Crypto analyst FlibFlib also sees Bitcoin dropping down to $7,100 level in order to fill the CME Gap. Meanwhile, crypto trader Cantering Clark shares his current “game plan” for Bitcoin.
Talking about his plan, he says once we break above the top green, there is a high probability of long continuation. While there is moderate to a high probability of a bounce in the green zone below.
In the short term correction trend, he is considering shorts below the red zone because
“Odds are if price flushes to that point and does not react in the green area above that continuation further down to our next support is more likely.”
Clark further talks about the current extension where he says after a breakdown from a bubble top one could mean, we would see a correction of some degree in the near term.
Crypto trader, Botje11 shares in his analysis on TradingView that if the double top theory is correct, we won’t be going above $8,100 level. It further means, if this plays out, we would take a drop again to around $6,400 level as “the bears simply want to see a bear flag and the 7500 breaking.”