After already dumping 600 dollars between the 24th and the 25th, Bitcoin lost another 300 dollars last night when it dived to 8,830 dollars, totaling a loss of 9% within a bit over 3 days.
Yesterday’s dump was no surprise as Bitcoin looked very weak already hours before the dump. The ichimoku cloud on the hourly became red already 2 days ago and the ichimoku cloud on the 4h has been red for 10 days. Both of those factors indicate that the bears are currently dictating the price. With such resistance above it, Bitcoin would’ve needed a lot of strength to push upwards, but there were no such signs to be found. Instead, we’ve seen the 9,400 dollars level (and soon after that the important 9,200 dollars level) turn into resistance.
A big indicator of Bitcoin’s weakness was exactly this; Bitcoin couldn’t get back above the 9,200 dollars level, despite several attempts yesterday. This lack of strength allowed the bears to gain the upper hand and push BTC far below the 9,000 dollars mark yesterday.
However, the bears might not stop here. If they push BTC down to the 8,600 dollars level it could get quite dangerous for the bulls as BTC has very little support between there and 7,800 dollars. Last time it took the bears only 3 days to push BTC down by 10%, and the bulls were able to accomplish the opposite within less than a day in late April. This indicates that there’s not a lot of trading interest between those two price levels, and a very quick dump down to 7,800 dollars wouldn’t be a surprise if the 8,600 dollars support fails as well – and that’s only a 500 dollars drop away from Bitcoin’s current price.