Bearish flags have been flying around the cryptocurrency market since the week began, only that the last 24hrs has managed to perfectly highlight its presence as firmer and unlikely to loosen its grip anytime soon.
The big bull which was alongside altcoins facing a pullback went below $10,000 in the past 24hrs and is still struggling to maintain price level in that range.
In a space of 15days, Bitcoin dropped by more than 15%, moving from $13,000 to its present trading price of $9713 at press time. Not only does this reflect the fact that its previous year-to-date high was largely influenced by the hype of Facebook’s Libra as a fundamental boost in value, but analyst Josh Rash had also speculated a possible decline to a 4-digit range in a recent tweet:
“Breaking down to support zone. On 1HR chart showing top of support zone now acting as resistance. Not a great sign for bulls and want to see price break back up in neutral territory Continue to watch this area for a break $10,189 will lead back down to 4-digit BTC”
Meanwhile, Josh followed up his speculations which have now been actualized with a tweet that terms the dip as “a gift, whether it (Bitcoin) hits $9k or 8k”.
Although a gift to buyers who would purchase BTC at a cheaper rate against the dollar, his speculation on the $8k mark hints a more bearish turnout, and as reflected by the 1hr chart from Bitfinex, the dip continues.
With a bearish entry, the bulls have since been suppressed. As at 23:00 (UTC) the bulls were displaced from the $10k price level all the way down to $9818 before hitting prior support at $9806 mark and coming all the way down to its current trading price.
With every bullish engulfing pattern, the bears suppressed gain control. A continuation of this could lead to higher lows as sellers continue to take charge of the market.