In the near-term, it is important to note that this recent drop has made the cryptocurrency’s monthly candle shape up to be fairly bearish, and one top analyst is now noting that bulls have less than ten days to “fix” this.
If BTC continues hovering around its current price or drifts lower throughout the final days of the month, it is possible that it will see significant near-term losses.
Bitcoin Stabilizes Following Massive Drop, But Monthly Candle Looks Increasingly Bearish
At the time of writing, Bitcoin is trading down over 5% at its current price of $9,600, which marks a massive decline from daily highs of $10,200 that were set yesterday just prior to the flash crash that sent the crypto reeling to lows of $9,200.
In the near-term, it is imperative that bulls continue absorbing the intense selling pressure the cryptocurrency is facing and begin pushing it higher so that it can recapture its position within the lower-$10,000 region.
DonAlt – a top cryptocurrency analyst on Twitter – recently offered a grave warning for Bitcoin bulls, explaining that they need to propel BTC higher before its monthly close if they want to avoid significantly further losses.
“The absolute state of this current monthly candle. Bulls better fix this in the next 10 days,” he explained.
The absolute state of this current monthly candle.Bulls better fix this in the next 10 days. pic.twitter.com/zLJadrn2It
— DonAlt (@CryptoDonAlt) February 20, 2020
How Low Could a Bearish Monthly Candle Take BTC?
Assuming that bulls aren’t able to push BTC higher in the near-term, it appears that a bearish monthly close could lead the crypto as low as $7,800.
Prior to yesterday’s flash crash, DonAlt had shared a bear-favoring analysis that mused the possibility that the intense resistance within the lower-$10,000 region would be enough to catalyze a selloff, with his downside target sitting at roughly $7,800.
“BTC: I’m going on vacation, took this before leaving. Won’t be able to micro-manage because I’ll be in the middle of nowhere. See you guys in a bit,” he said while pointing to the chart seen below.
$BTC
I’m going on vacation, took this before leaving.Won’t be able to micro-manage because I’ll be in the middle of nowhere.
See you guys in a bit. pic.twitter.com/5vuUuHu85L
— DonAlt (@CryptoDonAlt) February 12, 2020
In order for this highly bearish possibility to be invalidated, it is imperative that bulls step up and push Bitcoin back above $10,000, with continued momentum from here confirming the strength of its 2020 uptrend.
Featured image from Shutterstock.