Wednesday evening saw a sharp drop in bitcoin price as the premium coin went from $10,277 to $9700 and then went further to down to $9482 as at press time. Following bitcoin’s fall, other major cryptocurrencies also witnessed falls between 4 and 10 percent. Several traders and analysts had earlier warned that bitcoin was heading for $8000 after it fell to $10,300 earlier this week.
Fall in Price Didn’t Come as a Surprise
Just before last night’s fall, popular analysts and cofounder at Block Roots Josh Rager tweeted
Bitcoin possibly just made its next lower high after rejecting 20MA on daily and short term trend line breakdown. Currently bouncing off long term trend line and wanting to watch a close above $10,200.”
Cryptocurrency trader, Scott Melker also predicted that even though the premium cryptocurrency was showing signs of being oversold, it was not enough to reverse the downtrend.
A more accurate prediction came from DonAlt who said “Rejected by resistance, bought up in support. If 10800 gives way I think we see 11700 again. If current support at 10400 does, I expect 8000. Looks weak but looks too good to short. Once this trading range resolves one way or the other the chop will end.”
Analysts and Traders Say Bitcoin Will Fall to $8000 or Lower
Following yesterday’s price drop, more analysts have come out to say, they think the coin will only drop more. One technical analyst pointed out that people are not ready for the market correction which is about to take place and this will affect market sentiment. His tweet reads,
DonAlt who earlier predicted bitcoin heading for $8k said earlier today that the fall was expected considering the range bottom between $9400 and $9700 had been tested six times this year alone, with five of them happening in this quarter.
Speculations around the reason for the drop in price have mainly been around people moving their assets to more stable safe-haven assets like gold, treasury bills, and government bonds. Gold, on the other hand, is almost at its all-time high as more people seem to have invested in it in the last months.
Another speculation around the price drop has been attributed to a 1400 BTC transaction that occurred from Coinbase to an unknown wallet. The transaction was flagged by Whale Alert on Twitter and happened a few hours before bitcoin’s price took a dump.