Unfortunately for Bitcoin’s bulls, the cryptocurrency has been unable to post any sharp bounce after posting massive losses yesterday, which signals that buyers are currently sitting on the sidelines and that further losses may be necessary before buyers step in and propel BTC higher.
Bitcoin’s latest dip closely followed a massive drop experienced by the cryptocurrency’s hash rate, but this indicator posted a sharp recovery overnight, which could be a bullish sign. Despite this, one popular crypto analyst is still targeting $7,200 as the level at which BTC may find long-term support that pushes it higher.
Bitcoin Plummets Below $9,000 and Fails to Post Any Recovery
At the time of writing, Bitcoin is trading down over 12% at its current price of $8,450, which marks a massive drop from its 24-hour highs of over $9,600, and an even deeper drop from its weekly highs of roughly $10,300.
This latest drop came as a surprise to crypto market participants, as it came in the form of a massive cliff that occurred when BTC neared $9,500, with its dip below this level sparking a sell off that sent it to lows of roughly $8,400 in a matter of mere minutes.
It is imperative to note that some analysts and investors believe that the drop in hash rate that BTC experienced prior to the crash yesterday signaled that this drop was imminent, but it is important to note that that its hash rate has posted a massive recovery overnight, which could be emblematic of an imminent price surge – assuming that there has been a short-term correlation between its hash rate and price.
Analysts Targeting $7,200 in Near-Term
Despite the potential bullish hash rate development overnight, analysts are still targeting lower lows in the near-term, with The Cryptomist, a popular analyst on Twitter, explaining that she is targeting $7,200 next.
“$BTC: Expect to see 7.2k in October. Question is, when is the next leg up? Right now, I’m looking at two price regions, 8.2k and 8670. If we re-test 8.2k first, regardless breaking or bouncing, the peak of the next leg up could be 8670 region, once floor is found from this drop,” she said.
The coming hours and days will likely illuminate whether or not this latest drop is simply a bear trap, or if it signals that the crypto will be caught in a downtrend for the rest of 2019.