Bitcoin Price Trapped Below $8,500 as Bears Call for a Drop to $6K

Around this time last week, the situation was looking increasingly dire for Bitcoin (BTC) and murmurs of a drop to $6,000 and even $3,000 began to circulate amongst traders. Even today there are still those that consider this a real possibility and perhaps it is. For the moment, Bitcoin appears to have stabilized and traders are hopeful that a strong move to $8,500 will occur over the coming days.

Since the drop from $10,300, Bitcoin has been pinned in the $8,000 to $8,400 range with support at $8,000 and $7,850. The digital asset formed a double bottom at $7,715 then crawled above the 20-MA of the Bollinger Band indicator. At the time of writing the 12 and 26 exponential moving averages (EMA) are in the process of converging on the 4-hour chart.

A drop below the lower Bollinger Band arm at $7,338 is likely to raise concern and the volume profile visible range (VPVR) shows limited demand in this area. While many abject to this assessment, a drop below $7,300 opens the doors to a potential visit to $5,700 where interest for BTC is shown on the VPVR.  Of course, there is always the possibility that bulls front-run Bitcoin price before it drops this low but similar to any asset, nothing can ever be assumed and nothing is ever guaranteed.

Bitcoin Price Trapped Below $8,500 as Bears Call for a Drop to $6K, CoinTelegraph, Oct 04