Bitcoin Price Drops Below $8,700 But Won't Reach $8,200: Here's Why

KEY POINTS

At under $8,200, BTC risks of breaching the 200-week moving average that it hasn't done before in its entire history
Breaking the 200-week MA would be unprecedented according to one analyst
Bitcoin is in danger of also closing below the 200-day moving average just after printing the golden cross pattern last week

From what was assumed to be a continuation of January's rally, where every Bitcoin bull rejoiced as their favorite cryptocurrency reached $10,000 again, BTC instead is under pressure of rounding up this month in the red.

Bitcoin broke the $9,000 level, slipped to $8,700 and even fell further to $8,520 on Wednesday, according to Coinbase prices. The golden cross pattern just appeared on Bitcoin's chart last week, but now it's in danger of closing beneath the 200-day moving average. But one analyst believes BTC trading under $8,200 at this time would be out of the question.

Analyst PlanB, who has almost 70,000 followers on Twitter, tweeted on Feb. 10, "Update: my 2 cents on #bitcoin price: - 2020: BTC stays above $8200 (so we are NOT dropping to $6k or $4k levels that others are predicting now). May 2020 halving: will be above $10k. 2021: bull run starts after the halving and tops $100k before Dec 2021 #NotFinancialAdvice."

$8.2k bottom still stands. It would really be unprecedented if it breaks, never happened before. Note it has nothing to do with s2f.
— PlanB (@100trillionUSD) February 26, 2020

PlanB thinks that BTC can't go lower than $8,200, answering a Twitter user who asked whether PlanB can reaffirm that level as the bottom. To break below the $8,200 would mean breaching the 200-week moving average, according to Plan B, and that hasn't happened in the crypto's entire history.

"$8.2k bottom still stands. It would really be unprecedented if it breaks, never happened before. Note it has nothing to do with s2f," PlanB tweeted.

$8.2k bottom still stands. It would really be unprecedented if it breaks, never happened before. Note it has nothing to do with s2f.
— PlanB (@100trillionUSD) February 26, 2020

Investors who are new to the game fear Bitcoin extending its fall. But Bitcoin bulls have two arguments before the expected bullish event in May: One is for BTC to surge before the halving, and the other is for it to drop.

Analysts like Tone Vays and Willy Woo think that lower prices would precede a rally by halving time. But their prediction for BTC to trade at $4,500 is in sharp contrast to PlanB's forecast of BTC keeping off from those levels.

Crypto₿ull, on the other hand, is full-on bullish on Bitcoin and estimated that Bitcoin would skyrocket to $34,000 by July. Crypto₿ull expects BTC to continue to appreciate month by month before May and even offered his latest forecast that BTC would be at $500,000 before 2021.