The price of Bitcoin has recently fallen below the $8,000 line. This comes as the Bitcoin price has been trading above the $8,000 line for the past couple of weeks. Now, some are questioning whether this could herald a break in the overall bullish macro price trend.
Bitcoin heads below $8,000
At the time of writing, Bitcoin is trading at a price point of $7,990 according to COIN360. This means that the premier crypto is close to the $8,000 line, but nonetheless below it. Furthermore, breaking below of this psychologically important price barrier could merely be a prelude to future price falls, according to some fresh scenarios.
Several crypto market commentators have been warning that Bitcoin might once again test the support around the $8,000 line. This comes following around a week of regulatory headwinds for the larger crypto industry and – most notably – Facebook’s escalating crisis relating to the Libra Association.
However, things are not entirely bleak. Some market commentators have said that Bitcoin has yet to reach a ”more significant” lower boundary. This price point is estimated to be around $7,400 – so the price can still fall further without the price drop meaning too much in the grand scheme of things.
Nevertheless, market spectators have said that numerous timeframes for Bitcoin appear negative. For example, ”Filbfilb” said to Cointelegraph that ”all timeframes for Bitcoin trading now look negative.”
Does Bitcoin now have a bearish outlook?
In addition to this, the Twitter trader Crypto Rand joined in the bearish chorus. ”Bitcoin looking pretty ugly here,” Crypto Rand said, continuing that he’s ”not taking positions for now. But I would be looking to add shorts on the flag retest after the potential breakdown. Always plan in advance to avoid emotional decisions.”
As is often the case, the wider crypto market has followed in the wake of Bitcoin’s price decline. Many of the top altcoins have already lost around 5% of their market cap during intraday trading – again showcasing Bitcoin’s impact on the general crypto market.
Consequently, the major part of the crypto market is in the red today. Moreover, the declining Bitcoin price could potentially prove to break the relative calm seen in the crypto markets during the past month.
Nonetheless, many likely dread a return to a ”crypto winter” or other long period of bullish market activity. As such, it will be more important than usual to keep an eye on the crypto markets in the coming days.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.