Crypto analysts are reacting to Bitcoin’s drop below the psychological $10,000 mark.
A popular analyst on Twitter known as the Crypto Panda told his 15,000 followers he believes Bitcoin remains in a symmetrical triangle, which happens when an asset’s price consolidates while creating two converging trend lines with similar slopes.
The analyst believes BTC will break out of the triangle to the downside, triggering a major drop in price – an outlook that was quickly countered by Adaptive Capital’s CIO Murad Mahmudov.
Meanwhile, The Crypto Dog told his 159,000 followers on Twitter that BTC may be on course to drop below $8,000.
“It isn’t a good gut feeling seeing BTC lingering at support. That being said, I have no interest in shorting support. A close below $10k and I start to think we see the $8000s. Yesterday I got chopped longing too early. For now, sitting on my hands and holding long term spot.”
The director of digital currency research at TradeBlock cites the Fear & Greed Index from Alternative.me, which remains in the “extreme fear” zone at 11. John Todaro told Forbes he believes several recent events in the news may be placing pressure on the market.
“Sentiment has drifted lower as a sustained push higher has been halted, while alt-coin sentiment has been low for several weeks now as alt prices continue to decline.
[In addition], Ethereum founder Vitalik Buterin commented how rising transactions costs could slow adoption of ether, US regulators hit companies in the space including ICOrating, and Facebook’s stablecoin project is facing probes in Europe.”
Meanwhile, the CEO of crypto hedge fund BitBull Capital points to low volume is the key technical factor behind the dip. But despite the pullback, Joe DiPasquale says the leading crypto’s long-term fundamentals are looking up.
“This is a technical pullback due to Bitcoin’s failure to cross $11,000 amidst low trading volumes. On the fundamental front things are looking up, especially with Bakkt cleared for launch next month.
What Bitcoin currently needs is higher volume and new capital, which is likely to enter markets once Bakkt starts offering its physically settled futures contracts.”