Wednesday, October 27, 2021

Bitcoin continues to trade below $8,000, current drop likely to stop at $7,000

The Takeaway:

Price of the leading cryptocurrency continues to trade below $8,000 after the last week's major drop. The current decline is most likely to stop at $7,000. Trend analysts have observed a pennant formation on the bitcoin chart, which shows the current fall to continue to low $7,000.

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Bitcoin continues to trade below $8,000 after the 13% crash that occurred last week. Earlier, analysts had predicted that bitcoin might bounce back to $9,000 for a short time, but the price of the leading cryptocurrency has been on a downward slide since the crash. At the time of writing, BTC is changing hands at $7,833. 

According to a trend analyst, the current BTC drop looks incomplete as it is most likely to stop at $7,050 and not $7,800. BTC is currently forming a pennant which indicates a continuation of a preceding move, in this case, a bearish trend. 

However, analysts are predicting a prolonged bearish market for bitcoin as some have opined that it might go as low as $4,000 in the next month. Bitcoin this month mostly remained stable as it hovered around $10,000 mark, but as the month came to an end, the price took a massive tumble. The recent crash was the largest intraday hit since January of this year.

If the BTC chart is truely forming a pennant pattern, then BTC is targetting at lower $7,000. Last week BTC broke below the descending triangle pattern that it had followed for weeks. September was supposed to be the bullish month for the leading cryptocurrency, but it ended quite disappointingly. 

Let us know in comments where do you think the current BTC drop will stop?

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Ramon AnderSon
Ramon AnderSon
Ramon is a senior market research analyst who is very passionate about bitcoin. He has a degree in Applied Science from Assumption College, Worcester.

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