Bitcoin Price Back Below $7k – Is the Bullish Trend Over?

The price of Bitcoin (BTC) suddenly dropped below the $7,000 key support level for the first time in the last four days. This 5% drop in the last 12 hours is a telling reminder that volatility continues to ravage the crypto markets. Ethereum, XRP and other altcoins also posted declines, losing values of between 5-8% within that time frame. Is this the end of the BTC pre-halving bull rally?

Coin360 shows mostly everything in red because of the bullish trend in april 2020
Source: Coin360

On April 10, the price of BTC took a nosedive, shedding nearly $200 in minutes and settling below the $7,000 key support level. At the time of writing, BTC is trading between the $6910 to $6940 price levels. In usual fashion, altcoins followed suit, posting losses across the board and essentially plunging the crypto market in a sea of red. 

Bitcoin’s price drop started on April 9 after it failed to defend the $7,300 price levels. For most of the week, it had changed hands between $7,100 and $7,410 but then spiraled downwards as the weekend approached.

Tradingview chart shows the current drop of bitcoin in april 2020
BTC started its nosedive on April 9 and took a massive downturn the next day | Source: TradingView

Is the Bullish Trend Over?

With the Bitcoin halving a mere 32 days away, the crypto community is naturally concerned that the bulls have lost steam. However, analysts believe Bitcoin’s price is possibly still trading inside an ascending wedge that it has been on, since its March 12 bottom.

CoinFalcon CEO, Jordan Steeves pointed out that the price of Bitcoin is still under the support line so there’s still a possibility of a price reversal and even go on to retest the $7500 to $7800 key resistance levels.  

“There’s a gradually decreasing volume throughout the wedge, but the price is still above the support line, meaning a price reversal is entirely possible and that BTC trades back within the wedge. If so, then it will likely make another attempt at $7,500 and upwards. ” He stated. 

Trading view graph shows that btc is lower than support level
BTC price still within an ascending wedge for the moment | Source: TradingView

Owner of Wyckoff Stock Market Institute, Todd Butterfield shared Steeves’ perspective and even went on to claim that there was no way Bitcoin would revisit its sub $4,000 price levels 

Twitter post of Todd Butterfield, telling that all people who say that BTC will go back to $4k level are idiots
Source: Twitter

Nevertheless, if BTC continues on its downward course and below the wedge, it is possible that the price may fall back to $6,000.

What About the Rest of the Crypto Markets?

The last couple of sessions has seen many altcoins declining by more than 10%. Ethereum fell through the $162 support level and could likely revisit the $150 price levels should this current downturn continue. In spite of its recent halving Bitcoin Cash also suffered losses, breaking below the $250 and $240 support levels. XRP and Litecoin didn’t fare any better either, posting losses of around 5%. 

Small-capitalization altcoins like ALGO, CKB, ONT, BTG, KMD, STX, STEEM, SNX, BSV, SEELE, ELF, BCN, and AE also lost over 10% of their respective market values. The only crypto asset that posted notable gains of over 5% is WAVES. The 47th ranked cryptocurrency is currently trading at $1.07 on CoinMarketCap.

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