Skip to content

Bitcoin price drops to $ 8,900 and fears a new downward trend will begin

May 21, 2020

The price of Bitcoin (BTC) dropped to $ 8,900 today May 21 after a strong rejection of the $ 9,800 level. Community claims drop to $ 9,200 This could trigger a new downward trend.

Almost all indicators point to a correction

Short-term dealers in general Expect a correction in the Bitcoin market. Almost all macro indicators and oscillators they indicate an impending correction.

At the Bitcoin price was down initially From $ 9,200, it fell below an important Bollinger band line that often marks a turning point. If an asset continues to trend upwards, it is usually expected to recover to the Bollinger Band’s midline.

Bitcoin price drops to $ 8,900 and fears a new downward trend will begin
Bitcoin price drops to $ 8,900 and fears a new downward trend will begin

BTC USD daily chart. Source: Big Chronis Trading

BTC USD daily chart. Source: Big Chronis Trading

But in the case of Bitcoin, it fell straight through and dropped to $ 8,900 in quick succession. As such, you risk falling to the bottom of the Bollinger Band in the $ 8,000 range.

According to the Bitcoin trader Jonny Moe, The Bitcoin price could drop under another trend line that puts it back on before March 12th.

Since the second week of March, the price of Bitcoin has skyrocketed from $ 3,600 to over $ 10,000. After support was not restored from $ 9,800 to $ 9,900, BTC is now prone to a deep retreat below the ascending channel.

BTC USD daily chart. Source: Jonny Moe

BTC USD daily chart. Source: Jonny Moe

When the price of Bitcoin is below $ 9,000Moe said the range from $ 6,500 to $ 7,300 is likely be the next support for Bitcoin.

For its part, TraderXO predicted a drop to $ 7,700 last week and BTC shows a typical “false ladder” that risks being quickly corrected to less than $ 8,000.

Lower highs on Bitcoin's 4-hour chart. Source: TraderXO

Lower highs on Bitcoin’s 4-hour chart. Source: TraderXO

Traders feel pessimistic

There are two main reasons that make many of the top traders in the market appear pessimistic: the lack of support between $ 7,700 and $ 9,000 and the upside potential of BTC above $ 10,500.

Bitcoin saw only a slight decline as it rose from $ 7,700 to $ 10,000. Although it shows the strength of the momentum that he had at the time, it is also prone to a significant decline.

A lack of resistance above $ 10,500 is also considered a factor that prevents BTC from exceeding $ 10,000.

As long as there is little resistance above $ 10,500 at key levels like $ 12,500 and $ 14,000, There is a strong limitation over between $ 10,000 and $ 10,500.

In April became the hedge fund manager Mark Dow said that Bitcoin faces to massive resistance, even if the BTC price was $ 6,000.

The clash of strong resistance in the $ 10,000 to $ 10,500 range and lack of support between $ 7,700 to $ 9,000 increases the probability for the price of BTC falling to the $ 7,000 zone.