Bitcoin (BTC) Analyst Predicts Further Retracement After BTC/USD Dips Below $8,700

• BTC/USD price breaches below key support levels at $9,000
• The top crypto is setting lower highs, signaling an end to the bullish climb since Mar.12
• Possible drop to $8,500 major support levels.

The price of Bitcoin (BTC) dipped below the $8,700 mark during the early hours in the Asian market on Monday for the first time since the halving event. According to TradingView, XBT Bitcoin futures currently trade at $8,773 representing a 6.5% drop in the past 24 hours, as the sharp uptrend since Mar. 12 comes to an end.

The sharp drop in Bitcoin’s price in the past hour from highs of $9,100 set off over $20 million in XBT long contracts liquidations in an hour and $30 million in the past day.

Some crypto traders and analysts are seeing this as a precursor to the price further retracing towards the $8,500 region. Despite the near term bearish market indicators, BTC/USD long term fundamentals remain solid with spiking open interest in CME Bitcoin futures and increased institutional investment as reported by Grayscale Investments.

Bearish much? BTC/USD setting lower highs, lower lows

While the price of BTC has exploded over 150% since the “Black Thursday” crash, the overall outlook on the price is negative since the June 2019 highs of $13,800. One analyst noted a very bearish trend on the daily BTC/USD charts with the price-setting lower highs and lower lows. Despite testing the resistance levels on several occasions, BTC/USD is yet to set a higher high since the Q2 2019 bullish run.

Notwithstanding, the near-term technical indicators also give a bearish outlook with the relative strength index (RSI) oscillating towards the oversold levels, the formation of a death cross, and the price dipping below the bearish flag pattern support level.

A breach below the $8,500 support may open up a bloodbath towards the $8,100 major support level.