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Bitcoin Technical Analysis: BTC Triangle Breakdown Opens The Pandora Box, Where Does this Go?

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  • Bitcoin is just at the beginning of a treacherous dive to $4,000 or lower according to Peter Schiff.
  • Bitcoin recovery tested $8,800 but succumbed to more losses currently risking $8,200 support.

Twice in a period of seven days, Bitcoin price tested $9,300. The initial drop ensued after a failed breakout attempt at $10,400. The second attempt revisited the region after $10,000 support failed to hold. The jaw-dropping plunge yesterday saw Bitcoin dive more than $1,500 in the afternoon of the American session. This marked the prediction I made in yesterday’s analysis correct. However, the plunge not only exceeded my expectations but also those of other analysts.

Bitcoin price is currently trading at $8,313 after a recovery staged towards $9,000 hit a dead-end at $8,800. The bears have taken advantage of the dilapidated technical climate to thrust Bitcoin to the intraday lows of $8,223 (on Coinbase).

BTC/USD 4-hour chart

BTC/USD price chart by Tradingview

The current technical picture as observed with the moving average convergence divergence (MACD). The signal is not just strongly negative; the wide divergence is encouraging sellers to bet more on Bitcoin dropping to levels under $8,000. Besides, Bitcoin ‘haters’ like Peter Schiff reckon that this is just the beginning of a treacherous journey to $4,000 or even lower.

Consequently, BTC/USD is trading way below the moving averages. The widening gap between the 50 MA on the four-hour chart below the 100 MA paints a picture of a bearish momentum likely to last a significant while.

Daring to glance upwards, the first hurdle Bitcoin will face is $8,400. Trading above this level could allow for gains towards $8,800. However, the return above $9,000 will depend on the momentum Bitcoin will have on breaking $8,800 level.

Bitcoin Key Technical Levels

Spot rate: $8,348

Relative change: -201

Percentage change (daily): -2.34%

Open: $8,533

High: $8,744

Low: $8,223

Trend: Strongly bearish

Volatility: Shrinking

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