The price of bitcoin collapsed at the end of Tuesday, losing over $ 1,000 for more than an hour. BTC has dropped over $ 1,200 in the last 24 hours, and investors are wondering where the next stop is.
The descending triangle becomes bearish
Bitcoin moves into a bearish triangle, a model known for acting as a bearish signal in technical analysis. However, some investors had hoped that BTC would break the resistance line, especially after the cryptocurrency saw several peaks moving higher than the upper line of the scheme.
However, our technical analyst suggested yesterday that the price of bitcoin would fall below the support line and could even collapse to $ 7,200, a scenario that is even more plausible now.
According to Coinmarketcap data, BTC reached a daily low of $ 8,370, the lowest level since mid-June. Bitcoin has recovered some of its losses, accumulating over $ 200 so far, but has declined by over 1
Bitcoin price crash follows Flash Hashrate crash
It is worth mentioning that Bitcoin's recent decline was preceded by a shocking lightning-fast hash crash, as Blockchain.com data shows. on September 23, which is a record. The crash remains unexplained and surprising given the hash rate used to move up and update the record over and over. This measure shows the difficulty of extraction as competition among BTC miners increases.
The answer may come from China, home to several dominant mining companies. We have announced that China plans to remove crypto miners from its territory. However, the process has not yet been officially launched.
Interestingly, the lightning-fast hash rate crash coincides with the UN Climate Summit, which took place from 21 to 22 September. The event can put pressure on miners, who often rely on dirty energy to generate new blocks.
Do you think soon the bitcoin price will collapse below the $ 8,000 level? Share your expectations in the comments section!
Images via Shutterstock, TradingView, Blockchain.com