The price of Bitcoin has been viral in the latest crypto news as the most dominant cryptocurrency failed to rise above $10,000 but instead went back to the $8,000 region. While BTC stands at $8,800, one technical indicator shows that the bearish run is not over and that Bitcoin may go even lower.
What is important to note is that even despite the fact that BTC found some support around the current price levels, one technical indicator points to the possibility of the cryptocurrency getting erased soon and potentially plummeting towards $7,300. This is something no one expects and a position where BTC was trading at prior to the meteoric rally incurred late last month.
At the time of writing, there is a marginal drop in the price of Bitcoin as it nears $8,800. This marks a steep retrace from the multi-day highs of nearly $9,500 which had appeared to be a strong trading range which many analysts believed would hold strong for the near future.
Even though BTC lost its support at $9,000, it managed to bounce at $8,800 on multiple occasions over the past couple of days. On another note, this may signal that we could see a next key short-term support level bolstering the cryptocurrency and its price action in the coming days and weeks.
The one technical indicator which has a key value right now is called the GTI Vera Convergence Divergence Indicator – and shows that Bitcoin (BTC) is right now at the verge of shifting its recently established uptrend and going to a downtrend, meaning that further losses can be inbound.
Discussed in a recent Bloomberg report, the indicator was described by the author well – and as he said “the largest digital currency could retest the lows seen before its rampant run following comments by China’s President Xi Jinping in October.”
Moreover, the one technical indicator pointing to potential lows also notes that there is a narrowing gap between the signal and the vera lines, which suggests a potential trend change on the horizon.
As it stands, the crucial thing is Bitcoin’s response to the near-term support at $8,800 and the direction that the cryptocurrency will take. This is what is also going to affect the altcoin news section and offer insight into which direction the markets are heading next.
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