Bitcoin prices are down over a percent on the day, trading around $3,960 range, according to CoinMarketCap.
Some experts believe that if Bitcoin fails to stabilize above $4,000, a further drop could be expected as dip purchasers fail to step in and prop the prices up.
By eliminating this support, Bitcoin sentiment is taking a hit and partly sustaining the current price collapse. At this rate, it is likely that Bitcoin will retest $3,800; however, that is dependent on support levels.
As the current pattern is in an upward trajectory, however, this could be an early indication of the start of the corrective move, which could retest the small horizontal support level for resistance if we are to see further trend repeating. Until bitcoin reaches a higher levels than the prior high, we can’t say that the fall has ended just yet.
Crypto markets follow
Crypto markets are mostly in red today with an average percentage of modification among top 100 coins in the last 24 hours varying around 1.2-2.8%, following bitcoin prices. The most significant movers are in red as well and have hit the double digits, like Repo with a decline of 25% and DigiByte with a drop of over 12%.
Could bitcoin prices head lower?
As the cryptocurrency market experienced another decline in the last 24 hours, this validated the prediction in which a downtrend was anticipated.
Now that we are most likely seeing an expected retracement, some analysts are suggesting that bitcoin prices could be heading towards the $3666 area when the next significant support point is. But, if the support is not met, bitcoin prices could fall lower.
Not all experts agree
In spite of its current rate action favoring BTC’s bears, the current drop may become part of a bigger price movement that will eventually send its value into the upper-$4,000 area in the near-future.
How bitcoin prices react to its current drop listed below $4,000 will provide traders and experts alike more insight into where the entire markets are heading next, as continued downwards pressure on BTC will likely obstruct the gains that many smaller cryptocurrencies have experienced as of late.