On September 11, the value of Bitcoin, the most valuable cryptocurrency in the world, has been declining. BTC is currently trading at $25,135, which is a slight improvement after dropping to H2 2023 lows of $24,951 earlier due to an unexpected decrease during the early trading hours of the New York trading session.
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Bitcoin crashes to new lows, $20K possible. The Bitcoin Sell-Off Takes Form
On September 11, the price of the coin dropped below the consolidation of the previous few trading days, resulting in a bearish breakdown. The bearish trend cancelled out the bullish gains of August 31 and increased selling pressure on August 17. The sell-off on September 11 resulted in a wide-ranging bearish candlestick formation. Bitcoin crashes to new lows, $20K possible.
Despite the ongoing printing of the bearish trend, it is showing relatively high trading volume, indicating high participation levels. Given the above-average volumes, BTC is likely to continue its downward trend, following the conspicuous bearish bar of August 17. During that time, the coin fell by 12%, forcing BTC to trend below the $28,700 support level.
Bitcoin bears currently have control of the price action and are reversing the gains that were made between June and July 2023. During that time, Bitcoin's price increased from around $20,000 to a high of $31,800 by the end of July 2023. However, the coin peaked and began to fall after talks of a spot Bitcoin Exchange-Traded Fund (ETF) faded following the Securities and Exchange Commission's (SEC) decision to delay their decision.
Currently, Bitcoin's spot rates are down 20% from the July 2023 lows, but it is trading at critical Fibonacci retracement levels of the June to July 2023 resistance levels. Although BTC and crypto prices tend to post deep retracements, the coin may find support at around $25,000. However, if there are further losses from spot rates in continuation of the August 17 bear bar, sellers may press on to rewind gains and force BTC towards June 2023 lows at around $20,000.
The Death Cross On The Bitcoin Chart
According to a technical analysis of the candlestick patterns, one analyst has observed that the coin closed below the $25,600 mark after last week's bar closed. As a result, the Ichimoku Cloud indicator has displayed a "Death Cross" pattern. It is worth noting that Bitcoin prices tend to decline when this pattern appears before eventually recovering over several weeks. In June 2021 and January 2022, BTC experienced a 19% and 23% decline, respectively, during previous instances of the "Death Cross."
Based on this, if a “Death Cross” prints, BTC may dump by 21%, forcing the coin back to the $20,000 level or June 2023 lows. Before then, BTC has to breach strong support levels at $25,600, $24,000, and $23,200 before retesting the $20,300 zone.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.