After a brief period of upward momentum earlier this week that appeared to be a bullish attempt to boost Bitcoin price action, the bears once again won the lead and have now pushed the BTC price decisively below $ 8,000.
A leading technical analyst now points out that he believes this latest downward movement points to the possibility that a move towards the $ 6,000 region is imminent, which can be further validated by multiple bearish technical formations that crypto is currently expressing.
Bitcoin falls below $ 8,000 while bears roar
At the time of writing, Bitcoin is trading at approximately 2% at its current price of $ 7,960, which marks a notable setback from its daily highs of almost $ 8,200 that were set yesterday.
Although BTC had long found remarkable support in the region of $ 8,000, its inability to gain any upward momentum during its time in this region was a bearish signal that clarified that the bulls were losing their strength.
In the short term, it is important to keep in mind that Bitcoin is very likely to incur a greater downtrend as it faces a weak technical strength.
Josh Olszewicz, a popular crypto analyst on Twitter, explained in a tweet that the last fall came when he refused in his 200-day EMA and that a daily death cross is about to form.
"4h $ BTC - still in the range of more than 3 weeks - directly down from the denial to 200DEMA - daily death cross soon - tight daily bands and ready to expand down - div bull not confirmed here," he said.
4h $ BTC
- still in the range of more than 3 weeks
- directly down from the denial to 200DEMA
- daily death cross soon
- tight daily bands and ready to expand down
- unconfirmed bull div here pic.twitter.com/liNAIVflv0
- Josh Olszewicz (@CarpeNoctom) October 18, 2019
Analyst: BTC can point to $ 6,200 Next
The bearish nature that Bitcoin has incurred during its recent lateral attack and its subsequent fall below $ 8,000 may extend significantly further, as Olszewicz points out that a precise fractal pattern may indicate that a $ 6,200 movement is imminent.
“12h $ BTC: crocodile/fractal again requesting a short entry in this closed candle in a few hours (if the body is lower than the fractal wick). TP for short according to the multi-year PF = 6.2-6.9 based on Q1 diag, ”he said while pointing to the table seen in the following tweet.
12h $ BTC
crocodile/fractal again requesting a short entry in this closed candle in a few hours (if the body is lower than the fractal wick)
TP for short according to multi-year PF = 6.2-6.9 based on Q1 diag pic.twitter.com/VmoCadPtBN
- Josh Olszewicz (@CarpeNoctom) October 18, 2019
Assuming that Bitcoin falls lower in the short term and forms the death cross that is currently looming on the horizon, then it can fall significantly more before finding enough momentum to provoke the next upward trend of several months.
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