• Bitcoin price bled 10% overnight, losing FOMC-rally gains. 
  • Bitcoin price consolidation below $21,000 is a bearish sign and a sell opportunity for investors, argue analysts. 
  • Analysts argue Bitcoin is likely to extend its losses, the current flag points to a BTC bottom at $10,000. 

The crypto bloodbath is unlike previously seen flash crashes. Bitcoin price declined nearly 8% in the European session, slightly recovered its losses before resuming the downtrend. Analysts are evaluating where Bitcoin price bottom lies, as BTC nosedives to the $21,500 level. 

Also read: Will the FOMC minutes make or break Bitcoin’s uptrend?

Crypto bloodbath drags Bitcoin to a three-week low

Bitcoin price declined nearly 9% overnight. BTC hit a three-week low at the $21,500 level. The crypto market was hit by a bloodbath and a sharp decline in the European session. Bitcoin and Ethereum shed their gains from the past week, altcoins witnessed double-digit losses. 

Shiba-Inu-themed cryptocurrencies Dogecoin and Shiba Inu nosedived 15% and 13% overnight, respectively. While the reason for the crypto bloodbath remains largely unclear. Susannah Streeter, senior investment and market analyst at Hargreaves London said, 

It’s not showing the pattern of a flash crash, as the assets didn’t immediately rebound sharply but sank even lower in the hours that followed. It seems likely that this was as a result of a large sale transaction.

While Cardano was the first cryptocurrency to decline in the bloodbath, Bitcoin, Ethereum, Dogecoin, Shiba Inu and other altcoins followed. 

Analysts consider drop below $21,000 doom for Bitcoin

CryptoCapo, a crypto analyst and trader believes Bitcoin price is ready to plummet to new lows. The analyst argues that Bitcoin’s resistance is $23,500. This is an opportunity to sell the asset. If Bitcoin consolidates below $21,000, the downward trend is likely to persist till BTC price hits a new low. 

BTC-USD 4-hour price chart

BTC-USD 4-hour price chart 

Justin Bennett, a crypto analyst and trader argues that Bitcoin price has room to descend lower. Bennett has identified four likely bottoms for Bitcoin price. Currently, the $10,000 level looks like a price bottom based on the June flag point. In his recent tweet, Bennett discusses all four bottom scenarios and concludes that BTC price has bearish potential. 

BTC-USD price chart

BTC-USD price chart


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP