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Bitcoin Breaks Below $9,000 Signaling a Further Decline

Summary:
Bitcoin moved below ,000 on Friday. A bullish pattern is developing in the macro-perspective. BTC could plummet to ,400 or lower in the near term. In the last few hours, bitcoin moved below ,000. Now, it seems like BTC could be bound for a further downward push. Bitcoin Technical Analysis In the macro-perspective, bitcoin is still bullish despite the recent downturn. MindTrader, a well-known technical analyst, told CCN that he is “100% bullish on the market.” This could be related to the bull flag that has been developing on BTC’s 1-day chart since Mar. 26. The upswing that took BTC to nearly ,000 formed the flagpole. Meanwhile, the current consolidation phase it entered Sept. 26 is forming the flag. This technical pattern estimates a breakout in the same direction of the

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  • Bitcoin moved below $9,000 on Friday.
  • A bullish pattern is developing in the macro-perspective.
  • BTC could plummet to $8,400 or lower in the near term.

In the last few hours, bitcoin moved below $9,000. Now, it seems like BTC could be bound for a further downward push.

Bitcoin Technical Analysis

In the macro-perspective, bitcoin is still bullish despite the recent downturn. MindTrader, a well-known technical analyst, told CCN that he is “100% bullish on the market.”

This could be related to the bull flag that has been developing on BTC’s 1-day chart since Mar. 26. The upswing that took BTC to nearly $14,000 formed the flagpole. Meanwhile, the current consolidation phase it entered Sept. 26 is forming the flag.

This technical pattern estimates a breakout in the same direction of the previous trend. By measuring the height of the flagpole, the bull flag predicts a 70% target to the upside. Upon the breakout point, which sits at $9,700, bitcoin could surge to $16,500, if this pattern is validated.

Nonetheless, it seems like bitcoin could be pushing for lower prices in the short-term perspective.

Bitcoin is consolidating within a descending parallel channel that is part of a bull flag. | Source: TradingView

Bearish Outlook

According to Michael van de Poppe, a full-time trader based in Amsterdam, this cryptocurrency is still “stuck” within a descending parallel channel that formed since Sept. 26. Since then, every time BTC drops to the bottom of the channel, it rebounds to the middle or top. Conversely, when it surges to the top line, it pulls back to the middle or the bottom.

Now that the 200-day moving average failed to hold, bitcoin could be preparing for a move down to the 50-day moving average that sits at $8,650. But, an increase in the selling pressure behind this crypto could take it down to the middle or the bottom of the descending parallel channel that sits around $8,000 and $6,900, respectively.

Disclaimer: The technical analysis above should not be considered trading advice from CCN. The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in different cryptos but does not engage in short-term or day-trading.

This article was edited by Sam Bourgi.

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