- Bitcoin (BTC) still struggles to hold gain over the $8k level
- The $8,000 mark is a make or break point for Bitcoin
- Bitcoin Hash Ribbons suggest a collapse below $8k
Bitcoin News Today – For a couple of days now, Bitcoin (BTC) has been under the influence of the bears. The digital currency recently plunged below the $8,500 support level towards the $8k range. The world’s largest digital currency by market cap has been stagnant over the past day, as it is trading at $8,200 at the press time.
At the press time, Bitcoin is still down by about one percent from its value yesterday. Bitcoin is not the only one experiencing these losses, as altcoins are also down over the past day.
Bitcoin (BTC) Price Today – BTC / USD
The $8k Mark Is a Make or Break Point for Bitcoin (BTC)
Many analysts are saying that the $8k level is a make or break point for Bitcoin (BTC). The next breakout could decide in which direction the digital currency would be heading for the next few days, if not weeks or even months.
A popular Twitter personality and professional BTC trader – Jacob Canfield – recently explained why this price level does carry so much power on YouTube.
According to a volume profile indicator that shows price levels that have been historically important – VPVR – the most traded volume level this year is $8k. The chart of the professional BTC trader suggested that it is one of the most crucial price levels for BTC of all time. He also stressed on the importance of Bitcoin (BTC) holding the $8k level. However, according to a key indicator, a drop below the $8k level is more likely than a move higher.
Bitcoin Hash Ribbons See a Bearish Crossover
The Bitcoin (BTC) Hash Ribbons has just seen a bearish crossover or ‘inversion.’ Bitcoin Hash Ribbons is an indicator that uses a short-term MA of the hashrate and a long-term MA of the hashrate to show the health of the BTC mining ecosystem. The inversion or crossover is when the long-term level crosses over the short-term level. This means that miners have stopped putting resources to enhance the security of the Bitcoin network. Historically, a collapse could be the next move.
Another digital currency analyst released a chart that showed the price action of Bitcoin (BTC) just before and after the block reward halving in 2016. The crossover of the Hash Ribbons resulted in a decrease of 30 percent just days after the signal showed up, then a couple of weeks and months of consolidation before an eventual breakout. In November last year, there was also an inversion of the Hash Ribbons just a few days before BTC plunged by 50 percent, from $6k to $3k.