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Bitcoin plummets to $7700 after $9000 fakeout

Bitcoin plummets to $7700 after $9000 fakeout

Bitcoin began to tumble after a sharp rejection at $9,000 resistance, driving the price down as low as $8,000. Within the hour BTC plunged again to $7,700 before recovering to prices just below $8,000. Is this the pullback analysts have been forecasting?

Bitcoin is down 8.7 percent in the last 24-hours. OpenMarketCap posts 24-hour real BTC volume of $2.4 billion while CoinMarketCap indicates reported volume of $22 billion.

The sudden fall in prices follows rejection at $9,000 support on May 30. The drop has erased all of the gains from May 26, which saw the price shoot up from just below $8,000 to above $8,800 and testing $9,000 resistance three times before plummeting.

The consensus among crypto traders on Twitter is bearish or uncertain. Josh Rager asserts that the CME Bitcoin futures gap may offer support at $7,175 as prices fall.

Luke Martin pointed out that this is the first major retest of $8,000 since the beginning of the two-month uptrend.

Meanwhile, The Crypto Monk, who was bullish up until the rejection from $9,000, had his position invalidated with the break of $8,000 support.

That said, several analysts have said price corrections are normal during bull runs.

Crypto Quantamental, another popular Twitter account lead by an experienced Wall Street portfolio manager, said short-term drawdowns are “normal and expected” in a bull run.

The analyst also noted that Bitcoin’s volatility enables sharp drops in price even during major upward rallies, a trend that was first noticed during the bull market of 2017. The tweet was accompanied by a chart showing just how common these drops are.

As suggested yesterday by CryptoSlate’s market analyst Ali Martinez, “bitcoin could be preparing for a correction that could take its market valuation down to around $6,000. A reversal candlestick pattern that formed last week and a combination of the TD Sequential Indicator, the RSI and the StochRSI are all indicating that a pullback is likely.”

It seems that pullback is materializing.

Bitcoin | BTC

Updated: Nov 7 at 2:52 am PDT
$8,027.99
-7.77%

Bitcoin, currently ranked #1 by market cap, is down 7.77% over the past 24 hours. BTC has a market cap of $142.41B with a 24 hour volume of $22.8B.

Chart by CryptoCompare

Bitcoin is down 7.77% 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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