Bitcoin dropped today another leg lower as the blood that was spilled on the streets on the weekend seems to be overflowing the crypto market.
On Saturday, the price of the digital asset went from around $10,400 to nearly $9,800 and then yesterday we went further down. Now, today, we took another hit and went as low as $9,467 on Bitstamp.
This dip in price has already turned the market sentiments into neutral from yesterday’s “greed” as the Crypto Greed and Fear Index fell 10 points which given the price drop could very well turn into fear.
“This is not a drill. It is time to panic”
Trader Mr. Anderson sees this drop to be short-lived as he points out, “This High Time Frame (Daily) Countertrend Algo shows us that a pullback was certainly predictable and due.”
He added: “However, it is likely to be short lived (not a HTF trend change) since Bears need to work fast to avoid a series of oversold conditions on low time frames.”
Short lived or not, for now, the price is continuing its descent while volume continues to rise. In the past 24 hours $1.4 billion worth of Bitcoin has exchanged hands on top ten exchanges with real volume.
“Volume is showing real selling. OI and price are illustrating a bearish relationship. The structure has broken. 4 hr has printed lower highs and lower lows. The daily MS still holds but if this pattern continues it could mimic the 4 hour MS. Gut says the price tests 200 MA,” says trader CryptoISO.
This could play out into the halving
Meanwhile, popular trader Majin is maintaining his bearish stance and sees $8,000 coming up.
This is not the first time Majin has been bearish on bitcoin price, he has been calling for bears even while the market was celebrating the bulls.
“All I see is everyone blinded by euphoria of alt szn & bull runs, and 95% of the most bearish person’s have turned bullish. Meanwhile lower Macro-highs everywhere, no influx of volume, and an overheated market. It’s over,” said Majin.
He has been even expecting the $10,000 to fade, a level which managed to hold about four days before taking a tumble yet again. Majin explained that five digits have to fade because “that’s where the balance of power started reversing.”
“You’re gonna witness dumps & short squeezes into dead-cats, bear flagging us down, level by level. As the denial of the herd will be squeezed out of their useful liquidity,” said the trader.
But this is not all, according to Majin the bears are just getting started and this bearish momentum “will play out into the halvening.”
“Sell everything today, take a vacay & come back after the halvening,” he quipped.
Eyes on the Prize
Meanwhile, popular analyst PlanB is quick to point out that there is no need to panic and just focus on the long term. His stock-to-model flow predicts Bitcoin’s price to “overshoot” $100,000 before December 2021.
