The latest Bitcoin price crash: sellers in control below $6,430
The recent Bitcoin price crash saw the coin falling dramatically, losing 20 per cent of its value in less than an hour. Check out our technical analysis to find out what happens next to BTC.
The latest Bitcoin price analysis highlights that a major bearish shift has finally occurred in the number-one cryptocurrency.
Bitcoin price crash could lead the coin to the dark abyss
As the continuation of the ongoing Bitcoin price crash, investors saw the coin plunging to a new 2020 trading low earlier today. Just like that, the industry-leading cryptocurrency lost its safe-haven status and followed traditional financial markets lower.
We have conducted our own Bitcoin crash analysis to find out what may happen next. The results are anything, but optimistic: the technical charts suggest the cryptocurrency could fall towards the $2,400 level, due to the invalidation of a large bullish inverted head-and-shoulders pattern.
Bulls need to rally the price back towards the $6,800 level to form a bullish reversal pattern.
How far could Bitcoin crash 2020 go: BTC medium-term price trend
BTC has suffered its worst daily loss in more than five years. But why did the Bitcoin price crash happen at all? The majority of analysts blame the rapidly spreading coronavirus outbreak that caused crypto traders and investors to liquidate positions.
To put the decline into perspective, the BTC/USD pair traded down by more than 50 per cent at one point from its weekly price open.
Bitcoin technical analysis shows that continued losses below the $6,430 level could cause a drop towards the $2,430 level.
The invalidation of a bullish inverted head-and-shoulders pattern on the daily time frame that has been forming over recent weeks is a major setback.
Medium-term traders have few reasons to be bullish towards BTC/USD while price trades below the $6,430 level.
With this in mind, continued losses below the $6,430 level could provoke a technical test of the 2019 trading low.
Bitcoin short-term price trend
Truth be told, Bitcoin price drops are not an uncommon phenomena. However, they have not been that steep in quite a while. Bitcoin technical analysis shows that cryptocurrency is heavily bearish over the short term while the price trades much below its previous $9,000 level.
The lower time frames currently shows that a bullish reversal pattern with substantial upside potential is starting to build, following the rebound from the $3,800 area.
In order to confirm the formation of the bullish the BTC/USD pair will need to stabilise above the $6,400 area.
Should we see the pattern confirmed, and price stabilisation occur, the BTC/USD pair could rally towards $9,000 level.
Failure to form a bullish reversal pattern and the short-term technicals highlight the $4,700 and $4,400 levels as potential near-term bearish targets.
Crypto crash: Bitcoin technical summary
Bitcoin crash analysis shows that the cryptocurrency has turned heavily bearish after breaking below the $6,430 level. The invalidation of a bullish pattern could cause a decline in the pair towards the $2,400 level.
You can always follow the latest updates on the Bitcoin price crash or crypto crash with Currency.com to spot the best investment opportunities and make rational trading decisions.