Bitcoin Price Drops to $7,830 But One Technical Indicator Says Selling Pressure May Abate
- The Bloomberg Galaxy Crypto Index sees a rally ahead
- “For now the sellers appear to be firmly in control,” says Edward Moya, a senior market strategist
- Analyst sees Bitcoin falling to $7,700 and $7,100 in the coming future but if we break $6k, even $3k is possible
- Bitcoin takes a 3.5% drop
Ever since Bitcoin shot up 42% on the back of Chinese President publicly promoting blockchain technology, and now reinforcing blockchain not Bitcoin narrative, the leading cryptocurrency has been on a constant decline.
After surging to $10,500, on Oct 26, we dropped below $10,000, then on Nov. 11 we breached $9,000 level and today we have dropped under $8,000, ready to trace all the way back to Oct 25 level around $7,400.
According to experts, more pain is ahead for Bitcoin. Analyst Benjamin Blunts is expecting a drop in the $7,700 – $8,000 range. But once this “5 wave decline” completes, the following bounce will be “strong,” he said.
The ongoing decline in BTC price has the analyst The Cryptomist reinforcing her 7.1k target from last month. But this drop in price has the market seeing the possibility of $3,000 as well, if price breaks below $6,000, an important level of 2018 on breaking down of which BTC hit its bottom at $3,200.
For me it’s 6k the big level…clean break below then objective is 3300…just about playing the ranges for me. But yeh let’s see what happens 🙂
— TraderSZ (@trader1sz) November 21, 2019
Amidst this bloodbath, one technical indicator is painting a positive picture. The Bloomberg Galaxy Crypto Index is potentially signaling that selling pressure may ease off and we might get to see a short-term rally. Based on the trading envelope indicator, this index tracks top cryptocurrencies including Bitcoin, Ethereum, and XRP and has lost 10% this month.
Bitcoin has been on a downtrend for three weeks straight and a “stabilization” near the 200-day moving average support level could act as a catalyst, reports Bloomberg. But today’s market action says this might not be happening. As Edward Moya, a senior market strategist at Oanda Corp., wrote in a note:
“The whole digital currency market has not had a positive breakthrough this month and we could see continued pressure on Bitcoin.”
According to him, China cracking down on cryptocurrency exchanges could further put pressure on digital assets. “For now the sellers appear to be firmly in control,” he said.