- Bitcoin breaks below the Key $7k Support mark
- BTC’s downtrend comes as the stocks record an extremely bullish week
- Bitcoin is likely to plunge further if it fails to hold gains over its current levels
Bitcoin News Today – After surging by about 100 percent from the bottom established in March and after days of consolidation, the price of Bitcoin broke below the $7k mark about an hour ago, at the time of writing. The world’s largest digital currency by market cap is currently trading around the $6,900 mark. This downtrend marks a decrease of about 6 percent from its peak on Thursday. Bitcoin is also down by about 8 percent from its recent high of $7,470.
Bitcoin Plummets As Stocks Recover
The plunge in the price of BTC comes after the stock market recorded an extremely healthy week. This week was pretty for the stocks, as the Dow Jones and the S&P 500 surged enormously as the COVID-19 curve begins to flatten. The ongoing correction of the digital currency market was somewhat to be expected.
Bitcoin (BTC) Price Today – BTC / USD
According to a recent report by NewsBTC, the Tom Demark Sequential on Wednesday printing a sell “9” candle on the charts of Bitcoin, Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Binance Coin (BNB), Tron (TRX), Tezos (XTZ), OmiseGo, Ontology, and Stellar Lumens (XLM). According to the time-based indicator, the 9 candles are usually seen at reversal points in markets.
For instance, 9 candles were seen when the price of BTC bottomed at $6,400 in December last year and the year-to-date high of $10,500 in February this year. Recently, the Stochastic indicator – a momentum/trend-based indicator, printed a signal that BTC was overbought. A prominent crypto analyst observed that it has been accurate up to 86 percent for Bitcoin.
Bitcoin Might Plunge Further If the Bulls Do Not Show Up
Some traders and analysts are expecting the price of Bitcoin (BTC) to plunge further if it fails to hold gains over its current levels. A popular BTC trader and technical analysis author – Tyler D. Coates –said that the recent price action has seen Bitcoin “threaten to breakdown a bull trend line” that has been in place since the bottom in March.
He added that the breakdown could see the price of the digital currency return to the mid-$5,000s. Others confirmed the bearish sentiments of Coates. Another prominent crypto trader said that the recent price of Bitcoin is looking similar to the beginning of the 2018 bear market that it is “strange.”
However, regardless of the potentially disturbing near term outlook for the digital currency, many analysts and traders are still optimistic about the long-term prospect of the world’s largest digital currency. The long-term outlook of the coin remains intact and bullish.