The longer Bitcoin price remained stuck at resistance around $8,000, the more likely it was to correct. Just yesterday analysts were talking of a big run up over $9k but that has all changed during Asian trading this morning as a pullback has initiated, dropping over $10 billion from crypto markets.
A few hours ago Bitcoin plunged 6.7 percent from an intraday high of $8,040 to $7,500 according to Tradingview.com. Since then it has recovered marginally to trade at $7,640 but the long-awaited pullback appears to have finally begun.
Checking the charts shows a clear double top formation, which BTC is now pulling back from. Since breaking the $8k barrier on May 13, Bitcoin price 00 topped out at just over $8,300 three times but failed to break through. Analysts are now eyeing support zones to see how low Bitcoin will go.
Yesterday there was talk of a surge over $9k but there was also the notion that Bitcoin has yet to have a 30% correction during the current rally which started in February. A pullback of this magnitude would send Bitcoin back to the $5,800 area.
According to crypto trader ‘The Cryptomist,’ who forewarned about this drop, there are two levels of support to look out for;
.Forewarned this drop earlier, and secured most of this month’s profits. I expect us to drop further and test support upon 7.4k region. 1D Rsi still needs to drop. If this support breaks, 6.8k is next regional support.
Trader Josh Rager, however, is not concerned as he sees the current pattern holding horizontal supports;
$BTC still in this condensing formation and held by horizontal supports.