Bitcoin Dips Below $8K in First Since June

Bitcoin has once again shocked investors after a sharp sell-off yesterday saw it strip over $1000 in value in quick succession.

AccessTimeIconSep 25, 2019 at 1:27 a.m. UTC
Updated Sep 13, 2021 at 11:29 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitcoin (BTC) has once again shocked investors after a sharp sell-off Tuesday saw it quickly drop $1,000 in value during a single trading session.

Over the course of 30 minutes, beginning at 16:00 UTC on Sept 24, prices dipped below $8,000 -- its lowest point since June 12 of this year. In addition, $30 billion has been drawn out of the market over a 24-hour period as investors sought to close their positions amid a frenzied sell-off.

screen-shot-2019-09-25-at-10-46-13-am

Eyes are now firmly fixed on the 200-day moving average (MA) that would officially mark the start of a new bear market should a strong close below $8,311 occur.

The price drop may have been exacerbated by margin calls and contract liquidations on Bitmex, according to a previous report by CoinDesk.

In any case, BTC's 2019 bull market hangs on a thread.

btc444

As can be seen above, BTC has begun to break down from a bearish descending triangle that had been noted by a large portion of the crypto Twitter community since as early as Sept 2.

Further, the $1,000 price drop flies in the face of Bakkt's recent futures launch, which was supposed to be a bullish catalyst but has so far fallen short of expectations.

Technicals point to the possibility of a short-term bounce, courtesy of an extreme oversold RSI on the daily chart and weaker histogram bars below 0. However, a measured move (the drawdown from peak to trough within the triangle) adds scope for a continuation to prior June 2018 supports near $6,100.

Pressure is on buyers to hold the defensive and retain the official bullish status above the 200-day moving average at $8,311.

All prices below that point would add credence to a new bear market for the remainder of 2019.

Disclosure: The author holds no cryptocurrency at the time of writing.

Bitcoin image via Shutterstock; chart via Trading View

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.