An Analyst Isn’t Counting Out the Scenario Where Bitcoin Drops to $8,000

Disregarding the ongoing consolidation, Bitcoin has seen an explosive price performance in the past two weeks. In that time frame, the leading cryptocurrency has gained approximately 25.8%.

While this latest move higher brought the cryptocurrency above critical resistance levels in the $10,500 range. $10,500 acted as a point at which three separate Bitcoin rallies topped, making it a level of importance.

Despite this technical strength the cryptocurrency has exuded, one analyst isn’t counting out the scenario where the asset plunges to $8,000 before a bigger bull run.

Related Reading: Crypto Tidbits: Bitcoin Explodes Past $11k, Ethereum 2.0 Nears, Cardano’s Shelley Launches

Bitcoin Still Could Drop to the $8,000s: Analyst

Bitcoin could drop towards the $8,100 region as the cryptocurrency bull trend loses momentum, says a cryptocurrency trader. He noted that he thinks the “risk reward [is] wildly favoring bears” at the moment due to the shape of the recent price action:

“$BTC macro picture: I think we’re topped or maybe one last impulse above current high. Had my eyes on 13k$ resistance for a while, went close enough, R:R wildly favoring bears from here until 13k is closed through and held above. Macro pull-back into $8’125 area is plausible.”

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Chart of BTC's price action since the start of the year with analyst by crypto trader SalsaTekila (@SalsaTekila on Twitter). Chart from TradingView.com

He elaborated in a later tweet that since Bitcoin crossed above the “massive $10,500 liquidity pool,” taking longs has made little sense from a risk management perspective.

He isn’t the only traders to have made such an analysis.

Another trader shared last week that Bitcoin’s rejection at the $12,000 range highs last weekend suggests that a drop towards the $9,000s and potentially lower is possible:

“$BTC – HTF View: Range highs tagged and closed back inside. CME Gap at 96s – $500 below. Plenty of stops resting…

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