Bitcoin’s selloff seen yesterday reached a boiling point this morning, as the cryptocurrency has now begun its descent towards the $7,000 region. This decline has led BTC to plummet below $8,300 in a brief movement, leading analysts to widely eye further downside.
This intense movement has also led the crypto to break below multiple key support regions that were previously bolstering its price, with the decisive movement below these levels opening the gates for serious near-term losses.
Currently, the next key support region that analysts are eying sits at roughly $7,700, with the strength of its ongoing downswing suggesting a move to this level is imminent.
Bitcoin Plummets Below $8,300 in Violent Movement
At the time of writing, Bitcoin is trading down 6% at its current price of $8,380, which marks a massive decline from daily highs of $9,200 that were set early yesterday just prior to the selloff that sent BTC reeling down to roughly $8,800.
Bears were able to further extend their momentum today, as they first led the crypto to move down towards the support bulls had established at $8,700, with the break below this level leading it to plummet at low as $8,290.
In the time since visiting these lows, the benchmark cryptocurrency has been able to bounce, suggesting that there is some support in this region.
This movement has sent shockwaves throughout the aggregated crypto market, leading most major altcoins to plummet 10% or more.
BTC Enters Full-Fledged Bear Trend as Bullish Market Structure Degrades
The bullishness that was formed by Bitcoin’s firm 2020 uptrend appears to have dissolved, with the ongoing selloff erasing the bulk of the gains the were incurred throughout January and February.
This has led Bagsy, a prominent cryptocurrency trader on Twitter, to explain that he believes BTC will be firmly bearish until bulls are able to recapture $9,200, further noting that the two regions of interest he is closely watching exist at $8,200 and $7,700.
“Trend is evidently bearish at the moment; not looking for longs on BTC until we flip 9.2, interact with 8.2 or 7.7,” he explained.
— Bagsy (@imBagsy) March 8, 2020
The coming several hours should offer insight into the long-term significance of this ongoing selloff, as further losses could mean a bear-trend is kicking off, whereas a strong bounce here could validate that bulls still have some underlying strength.
Featured image from Shutterstock.