Distress Bells Ring for Bitcoin (BTC)

Bitcoin (BTC) may be in a state of pre-storm silence. A technical indicator shows that a move of magnitude similar to the decline in which BTC fell from $ 8,000 to $ 3,800.

Although this move is still uncertain as to whether the cryptocurrency will support bulls or bears, a high-level trader said he believed it was a strong possibility that Bitcoin would revisit the $ 4,000 zone before reaching higher levels.

Bitcoin (BTC) Clearing May Occur

Over the past few days, Bitcoin has been trading around $ 6,600, but it is aggressively lowered by sellers when it comes to the $ 6,800 region. Today, sellers have shown more aggressiveness and lowered Bitcoin to $ 6,000.

This led to BTC trading in a relatively small range between $ 6,000 and $ 6,400. It is important to keep in mind that consolidation under resistance may be a sign in favor of the bull, but multiple rejections at the upper limit of this trading range seem to be a clear sign of decline.

Big Cheds, a popular crypto analyst, said in his last tweet that Bitcoin’s Bollinger Bands were very similar to the pre-liquidation situation of $ 3,800. Assuming that history is rhyming, leading crypto money is likely to make another big move soon.

$ BTC the #Bitco 4 hour – BB’s havent been this tight since before the drop from 8k https://t.co/gLUzCKS1Ur pic.twitter.com/ucniiwsxıh

– Big Cheds (@BigCheds) March 27, 2020

Bitcoin (BTC) Can Drop Up To $ 4,000

Cryptocurrency analyst and trader SalsaTekila believes that Bitcoin will drop to $ 4,000 levels soon. The analyst thinks that these levels will be seen with a 45% probability.

Still 45% tethered, still think it’s possible we see 4000 $ levels again. pic.twitter.com/3brc7xqcus

– SalsaTekila (JUL) (@SalsaTekila) March 27, 2020

Many other traders, including the popular analyst TraderXO, also noted that Bitcoin could fall to $ 4,000 or less soon. The coming days and weeks will make it clearer what direction Bitcoin will go.