Bitcoin price is trading below $10,000 and a further pullback could drive price even lower. | Source: Shutterstock
By CCN Markets: The bitcoin price has fallen below $10,000 in a minor pullback, dropping from $10,300 to $9,880 on major cryptocurrency exchanges within a two-hour span.
Prior to the abrupt $500 drop, several cryptocurrency traders stated that the bitcoin price is likely to correct to the $8,000 region before reclaiming the yearly high and initiating a stronger rally.
Why traders potentially see $8,000 bitcoin price in short term
Since July, the bitcoin price has demonstrated a high level of volatility, retesting a key psychological level at $10,000 six times in the past two months.
Although the dominant cryptocurrency has defended supports in the $9,000 to $9,200 range strongly following a dip to the $8,000 region on July 17, it has struggled to maintain momentum above $10,000.
$8.5k before $14k $BTC
— CryptoThies (@KingThies) August 23, 2019
According to one cryptocurrency trader, bitcoin has been hovering at support and a close below $10,000 would indicate a bearish short term trend, potentially leading the asset to a drop to the $8,000 region.
“It isn’t a good gut feeling seeing BTC lingering at support. That being said, I have no interest in shorting support. A close below $10k and I start to think we see the $8000s. Yesterday I got chopped longing too early. For now, sitting on my hands and holding long term spot,” he said.
DonAlt, a technical analyst, noted that a false rally may have been initiated by the optimism of retail investors towards the launch of Bakkt,