Bitcoin Price Suddenly Drops to $8,400 Level After Fakeout

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  • The Bitcoin price slips below the $8,500 level for the first time since briefly touching $10,000 at the end of October

Bitcoin Price Suddenly Drops to $8,400 Level After Fakeout

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The Bitcoin price has nose-dived to $8,470 after failing to conquer the $9,000 level earlier today. The top coin by market cap is down by more than two percent at the time of writing. 

Bitcoin Price

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With its latest move, Bitcoin has once again tricked chartists who were looking for a perfect long opportunity based on the asset's technical setup. 

Earlier today, crypto trader "The Wold of Wall Street" pointed out that BTC formed a "golden retracement," which would make perfect sense to go long. 

Trading expert Josh Rager was quick to weigh in on the most recent drop, claiming that a weekly close below the $8,235 level would lead to more selling pressure. He also says that low-time frame BTC charts look "ugly."

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Meanwhile, the "100 eyes" cryptocurrency scanner has spotted a bullish divergence, which is formed when the stochastic oscillator doesn't make a new low in tandem with the BTC price. Hence, there is also a possibility that this shakeout could mark the end of the ongoing bearish trend.    

Bitcoin definitely has a penchant for unexpected moves that cannot be predicted by technical analysis (TA). As reported by U.Today, the top coin by market capitalization surged by more than 30 percent on the same day it formed a death cross on its daily chart. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry β€” from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.