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Bitcoin Price Suddenly Crashes to $8,000 in Self-Fulfilling Prophecy

Summary:
The price of bitcoin just collapsed down through its long-standing support above ,000 to almost ,500. At the time of this writing, the market-leading cryptocurrency is trading around ,600 — but the extremely volatile nature of this move could have the price affected at print time. The Descending Triangle Proves Its Bearishness Many technical analysts have been drawing a descending triangle for months now, which — per classical technical analysis theory — is a bearish pattern. Though bitcoin managed to put in some slightly-higher highs throughout the pattern — which had some analysts claiming the price of BTC was trading, rather, in a symmetrical triangle — the cryptocurrency market leader has broken down through any support it had in convincing fashion. Bitcoin price breaks through

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The price of bitcoin just collapsed down through its long-standing support above $9,000 to almost $8,500.

At the time of this writing, the market-leading cryptocurrency is trading around $8,600 — but the extremely volatile nature of this move could have the price affected at print time.

The Descending Triangle Proves Its Bearishness

Many technical analysts have been drawing a descending triangle for months now, which — per classical technical analysis theory — is a bearish pattern.

Though bitcoin managed to put in some slightly-higher highs throughout the pattern — which had some analysts claiming the price of BTC was trading, rather, in a symmetrical triangle — the cryptocurrency market leader has broken down through any support it had in convincing fashion.

Bitcoin price breaks through descending triangle. | Chart: TradingView

Self-Fulfilling Prophecy

Those analysts that had been claiming that bitcoin was trading inside of a descending triangle have largely claimed that $8,500 would be the next major level of support — spurred on by intense buying interest and speculation.

Indeed, this belief has (thus far) proven to be accurate, with the price at Bitstamp almost perfectly hitting $8,500. On other exchanges, the bitcoin price didn't quite make it that low.

Fibonacci Levels Worth Watching

At the time of this writing, bitcoin is holding on by a thread to its last level of support around $8,500.

Should this level not hold, the next significant level where one may speculate on a bitcoin bounce would be in the vicinity of $7,236. Some analysts have looked at this level as a bit of an overshoot and expect that — should the price of BTC drop that far — it would wick back up rather quickly.

Bitcoin's key levels to watch following sudden breakdown. | Chart: TradingView

Analysts warn that a drop below $7,000 could trigger a devastating look-out-below situation for bitcoin, taking the market leader's price all the way back down to $5,430.

Ribbon of Resistance

It stands to reason that what goes down must come up, as bitcoin — volatile as it is — never moves in a straight line.

Bitcoin eyes possible support level near the four-hour exponential moving average. | Chart: TradingView

If you are looking for where a potential upwards retracement might meet resistance, the four-hour exponential moving average (EMA) ribbon has a solid history of acting as resistance or support — particularly on the bitcoin CME futures chart.

Last modified (UTC): September 24, 2019 8:00 PM

September 24, 2019 7:52 PM

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