Bitcoin (BTC) Falls Back Below $8,000, Ominous Predictions of New Lows
BTC looks bearish, set to return to levels not seen in a year, retesting the yearly lows.
Bitcoin (BTC) deepened its crash in the early hours of September 30, setting up to achieve one of the worst quarters since 2014. The loss in the past three months may expand to around 30%, wiping out positions since BTC traded at $12,050 in July.
BTC fell to $7,898.57 starting around 5:00 UTC, after holding above the $8,000 mark for a while. The recent crash from $10,000 is not over, it seems, renewing discussions of when bottom prices would be reached.
The BTC fear and greed index grew from a low of 12, at Extreme Fear, to current levels of 27, still signifying a lack of greed and possible bearish attitudes. This time, BTC prices fell on diminished volumes of $13 billion’s equivalent in 24 hours.
In general, the crypto market has shrank significantly, down to $48 billion in trades in the past day. In recent days, levels picked up to $100 billion, but shrank again. Now, BTC is on track to test whether the $7,500 range would be the bottom.
Some traders are already calling the lows for this trend:
https://twitter.com/TraderEscobar/status/1178539857125109760
Others, however, are predicting new lows under $6,500, with an extreme shrinking of the crypto market.
https://twitter.com/MarcDeMesel/status/1178541079089602562
Despite positive developments in 2019, price support was one issue that did not follow predictable patterns. BTC remains unpredictable, with its price discovery mechanism a complex system of exchanges, bots and even the interests of institutional investors.
The BTC market price currently moves down in conditions that are starting to point to general economic fear. The US Federal Reserve continues to secure liquidity injections for the overnight repo markets - a move that recalls the behavior of the European Central Bank in the fall of 2008. Central banks have a tool to provide liquidity if there are solvency doubts. Fears of a recession may also hamper the interest in BTC, which is seen as too risky.