Story by: Nick Chong
Bears are back, and they’re back with a vengeance. As of the time of writing this, Bitcoin (BTC) is trading at $7,100, having plunged as low as $6,800 — an extremely important long-term price level. The cryptocurrency market is down some 8% in the past 24 hours, and seems poised to tumble lower.
With that said, where will Bitcoin bottom? When will the pain finally stop for the leading crypto asset, which has drawn down from $14,000 to $7,000 over the past few months with little signs of stopping?
According to a well-known analyst, $5,100 is the point where BTC will find a definitive bottom — if it gets there, anyway. Here’s why.
Why Bitcoin Drop Likely to Bottom at $5,100
Firstly, he noted that the trend remains bearish, despite the support found at $6,800 and the bounce. The analyst backed this point by looking to BitMEX’s open interest, which is “keeping stable and increasing,” implying that few shorts are taking profit and buyers continue to open longs.
Mac continued that Bitcoin loss the June volume-weighted average price level, and has entered a “void” in the cryptocurrency markets that could see BTC easily continue into the low-$6,000s.