bitcoin price crash today
Bitcoin price plunges double-digits on Tuesday. | Source: Andrew Angelov/

The price of bitcoin just collapsed down through its long-standing support above $9,000 to almost $8,500.

At the time of this writing, the market-leading cryptocurrency is trading around $8,600 — but the extremely volatile nature of this move could have the price affected at print time.

The Descending Triangle Proves Its Bearishness

Many technical analysts have been drawing a descending triangle for months now, which — per classical technical analysis theory — is a bearish pattern.

Though bitcoin managed to put in some slightly-higher highs throughout the pattern — which had some analysts claiming the price of BTC was trading, rather, in a symmetrical triangle — the cryptocurrency market leader has broken down through any support it had in convincing fashion.

Bitcoin price
Bitcoin price breaks through descending triangle. | Chart: TradingView

Self-Fulfilling Prophecy

Those analysts that had been claiming that bitcoin was trading inside of a descending triangle have largely claimed that $8,500 would be the next major level of support — spurred on by intense buying interest and speculation.

Indeed, this belief has (thus far) proven to be accurate, with the price at Bitstamp almost perfectly hitting $8,500. On other exchanges, the bitcoin price didn’t quite make it that low.

Fibonacci Levels Worth Watching

At the time of this writing, bitcoin is holding on by a thread to its last level of support around $8,500.

Should this level not hold, the next significant level where one may speculate on a bitcoin bounce would be in the vicinity of $7,236. Some analysts have looked at this level as a bit of an overshoot and expect that — should the price of BTC drop that far — it would wick back up rather quickly.

bitcoin price crash
Bitcoin’s key levels to watch following sudden breakdown. | Chart: TradingView

Analysts warn that a drop below $7,000 could trigger a devastating look-out-below situation for bitcoin, taking the market leader’s price all the way back down to $5,430.

Ribbon of Resistance

It stands to reason that what goes down must come up, as bitcoin — volatile as it is — never moves in a straight line.

bitcoin ema ribbon
Bitcoin eyes possible support level near the four-hour exponential moving average. | Chart: TradingView

If you are looking for where a potential upwards retracement might meet resistance, the four-hour exponential moving average (EMA) ribbon has a solid history of acting as resistance or support — particularly on the bitcoin CME futures chart.

This article was edited by Josiah Wilmoth.

You May Also Like

3 Key Things the Mainstream Financial Media Is Missing About Bitcoin

Mainstream media is out spreading fear, uncertainty, and doubt (FUD) about bitcoin…

Bitcoin Price Eyes $8,000 as Bloomberg Signals New Buying Trend

Bitcoin’s price (BTC/USD) is eyeing a return to $8,000 as a new buying trend emerges, according to Bloomberg News.

Crypto Developer’s Arrest for Aiding North Korea Echoes Eerily Prophetic 2008 NYT Profile

Ethereum developer Virgil Griffith was arrested for teaching North Korea about crypto. A decade earlier, the NYT wrote an eerily prophetic profile on him.

Ethereum’s Vitalik Buterin to Sign ‘Free Virgil Griffith’ Petition Following FBI Arrest

Ethereum co-founder Vitalik Buterin is signing a petition to free estranged Virgil Griffith who was arrested by the FBI on thanksgiving.

Analyst Explains Why Bitcoin Price Could Plummet to $2,020 in 2020

An analyst says bitcoin could crash to $2,000 to $3,000 range as…

VeChain (VET) Jumps a Whooping 26%, Thanks to an Iconic Retro Game Remake

Contrary to the rest of the crypto market VeChain (VET) is up 26% today and showing no signs of slowing down, but what’s driving the token?