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Bitcoin breaks $8,000 support and falls to $7,500

Bitcoin breaks $8,000 support and falls to $7,500

The Bitcoin price continues to deteriorate, dropping another $500 to $7,500 per BTC. It seems momentum from April’s rally is wearing off.

Recent Bitcoin price action

Beginning in April, the price of a single BTC went from $4,150 to $13,000 in less than four months. The price peaked in late June at $13,015 and again in early July at $12,840.

Bitcoin price since April CoinMarketCap
BTC/USD price chart by CoinMarketCap

Since then, the Bitcoin price has continued to erode as the cryptocurrency traded sideways for three months before suddenly plummeting on Sept. 24. Overnight, Bitcoin dropped from $9,500 to $8,500.

Since the drop, the coin has been consolidating in a band between $7,800 and $8,600. Today, BTC broke out of this range, dropping 8 percent from $8,000 to as low as $7,300 on some exchanges. The price seems to have stabilized around $7,500.

Bitcoin US dollar price chart
BTC/USD by TradingView

24-hour trading volume is up from its 7-day average of $15.4 billion to $21.9 billion—a 42 percent increase. The uptick in trading volume indicates the price swing is salient.

Market sentiment

The Crypto Fear & Greed index is up from last month, where the indicator hit an all-time low of 12 suggesting “Extreme Fear.” The index is down from last week, dropping from a score of 40 to 33 suggesting sentiment has deteriorated.

Google Trends search volume is at a multi-month low, hitting values not seen since March 2019, where BTC was still trading at sub-$5,000 lows.

Google Trends formatted by Into the Block
Google Trends formatted by Into the Block

BTC average gain or loss

The majority of addresses are still “in the money,” meaning most addresses have unrealized gains from their Bitcoin purchases. Currently, 55.7 of addresses would record a gain with a large segment of coins purchased between $930 to $6,640.

In/Out of the Money chart by Into the Block
In/Out of the Money by Into the Block

Meanwhile, the real price paid per Bitcoin—an estimate of the average price paid per coin using realized market capitalization—decreased from a high of $5,730 to $5,670.

Real Price / Market Price chart by Coin Metrics
Real Price/Market Price by Coin Metrics

That said, the difference between the average price paid and the market price per coin has decreased substantially, indicating the market is less overbought due to the recent consolidation.

During the price peak in late June, the average gain would have amounted to $7,860 on a BTC purchase of $5,000—a gain of 157 percent. Today, this unrealized gain decreased to $1,830 with the average Bitcoin costing $5,670—an average gain of only 32 percent. These figures may indicate that it’s a better time to buy now.

That said, market conditions are still highly uncertain. Sentiment appears to be at a low while the charts show the Bitcoin price trending downward. Although current conditions may present a buying opportunity it’s impossible to know when the markets will recover.

Bitcoin | BTC

Updated: Nov 7 at 2:51 am PDT
$7,511.55
-7.04%

Bitcoin, currently ranked #1 by market cap, is down 7.04% over the past 24 hours. BTC has a market cap of $135.28B with a 24 hour volume of $21.97B.

Chart by CryptoCompare

Bitcoin is down 7.04% over the past 24 hours.

Posted In: , Price Watch, Trading

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Mitchell Moos
Author

Mitchell Moos

Contributing Analyst @ CryptoSlate

Mitchell is a software enthusiast and entrepreneur. His first startup built algorithms for optimizing cryptocurrency mining. Prior to CryptoSlate, Mitchell was a project manager at a firm that built distributed software on Hyperledger. In his spare time he loves playing chess and hiking.

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