Bitcoin Hits “Do-Or-Die” Support Level as Selling Pressure Swells
After an extended period of consolidation, Bitcoin has failed to hold above its previously established support level at $11,000 and has now plunged into the $10,000 region. Today’s price plunge marks an extension of the downwards pressure that BTC first incurred when it failed to break past $13,800, which remains a yearly high.
Analysts are now noting that Bitcoin is nearing a “do-or-die” price point at which the cryptocurrency must hold above, or else significantly further losses could be imminent – which may mark a reversal of the bull trend that has occurred throughout 2019.
Bitcoin Drops Towards $10,000, Breaking Previously Formed Parabola
At the time of writing, Bitcoin is trading down over 7% at its current price of $10,490, which is down significantly from its daily highs of $11,500.
While looking towards BTC’s price action over a one-week period, it is clear that bears are in full control at the moment, as the cryptocurrency’s buyers were unable to stabilize its price above $13,000.
Additionally, this recent period of consolidation and subsequent drop has forced Bitcoin to violate its previously formed parabola that was created during the course of this uptrend, which may spell trouble for the entire crypto markets.
Peter Brandt, a highly celebrated analyst who predicted the recent bull run, spoke about the violation of this parabola in a recent tweet, while referencing the below chart.
Importantly, the violation of this parabola could lead to significantly further losses in the coming days, weeks, and months; which could mean that the recently formed bull trend is in full reversal.
Analyst: BTC at a “Do-Or-Die” Level That Must Hold
It is highly probable that analysts will soon understand whether or not bears will garner full control of the cryptocurrency, as it is currently sitting at a price level that must be held in the near-term, or else significantly further losses could be imminent.
Josh Olszewicz, a popular cryptocurrency analyst on Twitter, spoke about this price level in a recent tweet, noting that it may not be until August or September that we truly know whether or not BTC will soon drop back into the four-figure price region.
“1D $BTC at Kijun do-or-die support here. Possible that we grind for a while in triangle consolidation then make a decision towards Aug/Sept. If break down, e2e to 8.8. Closing Q3 at -15%ish is on par w/historic Q3s. #WakeMeUpWhenSeptemberEnds is a real thing,” he explained.
As the week drags on and Bitcoin continues to react to its key support levels that lie directly below its current price level, it will likely soon grow clear as to whether or not BTC will continue climbing higher or if the “Crypto Winter” will persist.