As at the time of writing this Bitcoin analysis, the price of the cryptocurrency as crashed more than 3% from its previous highs. And it is dragging the altcoins market down with it.
I warned about the potential for this flash crash in my previous Bitcoin analysis “Red Flags: Bitcoin To $9,700 Or Will Bears Step In?” when I pointed out the red flags that were showing up on the Bitcoin bull run and why we might see a price reversal soon.
The Bitcoin price followed that price analysis and is currently crashing after it broke and closed below the base channel of the rising wedge pattern. The important question now is “what will price do next?”
Well in this Bitcoin analysis, I will be analyzing the current price action and giving out my opinion and price predictions for Bitcoin in the coming days ahead.
A Potential For More Bearish Pressure
I don’t believe the Bitcoin fall is done yet, there is still a very high probability that we might see the price continue to go lower to at least the $9,000 support region in the coming days.
This support region is so important because it as been holding the Bitcoin price up for a while now and might do so again when the price gets there.
However, a break of this support region could see the Bitcoin price falling as low as $8,900 or even $8,000.
Understanding The Current Pattern We Are Trading In
The Chart above is my previous analysis of Bitcoin trading in a falling wedge pattern. In this analysis Bitcoin just broke and closed above the top channel of the falling wedge.
However, after the price action and the crash of Bitcoin yesterday, I will be adjusting those lines to suit what the Bitcoin price action is telling me right now.
And according to the modified lines, we can see the Bitcoin price is still currently trading within that falling wedge pattern and is yet to break out.
I expect the price to shoot down where it would either break through the base channel and keep going down or bounce off of the base channel to the upside.
Altcoins Crashing As Well
The crypto market opened today with various altcoins in a sea of red. This was as a result of the Bitcoin crash we saw happen yesterday.
The altcoins market took a dive with Bitcoin, giving back most of the gains they have accumulated throughout this week.
Will this bearish move continue to drag the altcoins down or will we see the altcoins market break the current correlation and start moving higher in the coming weeks? I will keep you updated on all that and more on my daily Bitcoin analysis.
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