Bitcoin Approaches Critical Support Level After 9% Slide

As predicted, a big movement came for bitcoin following a week of consolidation. Analysts have been mixed all week but those that leaned towards bearish were right as the king of crypto plunged back into four figures a few hours ago.

Bitcoin Nearing New Low

A huge red candle resulted in a dump of over 9% for BTC a few hours ago. The pennant that was identified by analysts yesterday reached its conclusion and what appeared to be an upside breakout actually turned into a massive slide.

From an intraday high of $10,270, bitcoin dumped almost $700 in less than an hour. BTC found temporary support at around $9,650 before losses started to accelerate again an hour or so ago. The next slide went even deeper, bottoming out at around $9,330 according to Tradingview.com

BTC price 1 hour chart – Tradingview.com

The next support level lies at the previous lowest point which is around $9,000. If that cannot hold, BTC will fall back into the $8k region as many have predicted. Trader and analyst ‘CryptoFibonacci’ has been looking at the daily chart which shows support where a number of technical indicators align.

I just switched this Line chart over to a candle chart and put Fibs on this. And low and behold, look what we have. Fib cluster, 200 day ma, gap fill area and the old resistance/new support area. That is a massive area.

$BTC Daily chart – Update

I just switched this Line chart over to a candle chart and put Fibs on this. And low and behold, look what we have. Fib cluster, 200 day ma, gap fill area and the old resistance/new support area. That is a massive area.#BTC pic.twitter.com/iPhndzF9fB

— CryptoFibonacci (@CryptoFib) August 29, 2019

Following that, the trader added that an expected drop to $8800-$9000 would be bought up pretty quickly. At the time of writing bitcoin was still falling and heading towards the $9k level so this price range looks very plausible at the moment.

Fellow crypto analyst ‘WelsonTrader’ has noted a trend line that needs to be held to prevent further losses for BTC.

Bulls have 1 chance to bring #Bitcoin above 10k, and it’s if it bounces from this green support line. I’ve known for weeks that it would re-test this line, and I’ve posted about it before!

Bulls have 1 chance to bring #Bitcoin above 10k, and it's if it bounces from this green support line.

I've known for weeks that it would re-test this line, and I've posted about it before!

Do you think it will bounce or drop below? pic.twitter.com/WSDF9IF7Xr

— WelsonTrader (@WelsonTrader) August 29, 2019

Bitcoin is now approaching a critical level in terms of support over the past couple of months. To remain range bound it would need to bounce from its current price 00. Failure to do so within the next couple of hours is likely to see BTC fall back below $9k for the first time since mid-June.

All eyes are on the charts now as the sharks begin to circle in the $8k zone, waiting for that fall.

Will bitcoin retreat back to $8k? Add your thoughts below.

Images via Shutterstock, Twitter @CryptoFibonacci, @WelsonTrader, BTC/USD charts by Tradingview