Bitcoin Price May Plunge To $8,800 Soon, Analyst Suggests

Bitcoin is on a price descent in the last five days and continues to batter the $9,000 support. Along with lower volatility, analysts warned of a massive selloff that could bring the cryptocurrency back to $8,800.

While some analysts believed the Twitter hack that happened Wednesday, July 15, proved a factor in declining BTC prices Thursday, the charts revealed Bitcoin is already on the downtrend, to begin with. Since volatility in the stock market is nothing compared to that in the crypto markets, Thursday’s price decrease to $9,124 was declared business as usual by the crypto community.

However, the continued battering of the $9,000 support could weaken this level, analysts warned. While price recovered to $9,124, there is intense resistance already at the $9,150 range. According to NewsBTC, a bearish trendline has formed in that price level on the one-hour chart. The main resistance, however, is at $9,300 and bulls must be looking to reclaim it.

NewsBTC said if $9,000 failed, the next support level is at $8,800. A break below that will mean a bigger downward move for Bitcoin.

Writing for Cointelegraph, trader and analyst Filbfilb said a realistic buy zone can also be found at the $8,200 level. The publication also noticed the crypto exchange Kraken has been the recipient of around $38.5 million worth of BTC daily. Naturally, a higher amount of BTC being deposited to exchange from external wallets signals that the owners of these wallets are looking to sell their holdings.

Still, the general trend revealed more Bitcoins are going out of exchanges. Traders and cryptocurrency enthusiasts see this activity as a signal that users are holding on to their coins in the long term instead of selling. This means the news about Kraken could just be an anomaly in the short-term. Kraken’s CEO Ki Young Ju also predicted a downtrend, expecting a pullback in his interview with Cointelegraph. The Kraken CEO is confident, however, the downtrend will not revisit March 2020 levels. “It’ll be around $8,800,” he added.