A picture showing Bitcoins falling from a broken support
Bitcoin Breakdown Triggers Fresh Bearish Trend – $70K Next?
In Brief
- • Bitcoin broke below the $90,000 level, triggering heavy liquidations and reinforcing a bearish shift.
- • Analysts warn that failure to reclaim key support could open the door to significantly lower prices.
- • The downturn has spilled over into the broader crypto market, with major altcoins losing more.
After losing a key price level at $90,000, Bitcoin may have triggered a fresh downward spiral. Analysts at CryptoPulse believe this may be the case and the coin is heading to much lower prices than initially thought.
According to their analysis, the coin has broken down from its ascending triangle which has led to massive liquidations and ushered in a bearish momentum across the crypto market. As of yesterday when Bitcoin lost the key support, over $200 million in long positions were liquidated and the figure continues to rise.
Bitcoin Heading to Bottom Range
Since the market crash which started with a steep crash from the all-time high of $126,000, Bitcoin has reached a low of $83,000, representing a fall of well over 30%. Since then, the price has struggled to hold up a recovery and now, things may be getting worse. According to CryptoPulse, the price may be heading to $81,500 at the bottom range.
While this area holds some hope that buyers may jump in and cause a reversal, there is also a chance that the level may not hold and a deeper plunge may come into play. In that case, the next available support according to CryptoPulse is around $70,000, which is a level the coin has barely touched this year.
Other analysts had predicted that the coin could go substantially lower if it lost the critical $88K support which it did yesterday. Veteran trader Peter Brandt even sees worse, stating that Bitcoin may crash to $25,000 in an unprecedented downward move due to what he calls a violation of parabolic advance for this cycle.
At the moment, the coin is still trading above $86,000 in what seems to be a sideways movement since yesterday 15 December. The bearish momentum still holds and analysts believe only a reclaim of $88,000 will reverse the trend. If not, the drop to the low around $80,000 is next, just like CryptoPulse predicts.
Altcoins React to Bitcoin’s Breakdown
Bitcoin’s breakdown has set in motion a bearish momentum that is now affecting the rest of the market. As is usually the case, altcoins are responding to the momentum even more than Bitcoin is.
Top altcoins like Ethereum, XRP, Dogecoin and Cardano have all lost more value in the last 24 hours than Bitcoin. If the downward movement continues, a lot more losses await altcoins with several supports to be lost.
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