Bitcoin Falls to $7,400, Making $6,000 likely again

After reaching $6,600, Bitcoin (BTC) experienced sharp price increase, only to return to $7,800 yesterday. This marked an increase of about 20% from the bottom, which led some to believe that the bottom is inside. However, in the last 12 hours, the cryptocurrency has begun to slide once again, causing bearish reactions from a number of industry analysts.

Bitcoin falls to $7,400

At the time of writing this article, bitcoin is trading for $7,400 in several major exchanges, losing 3% of its value in the last 24 hours. While this wasn't conclusive a recessive movement. This means that new lows are coming, analysts believe that it is a precursor of the coming pain.

Popular trader Immortal Technique recently observed that the upward trend had been a rapid deceleration from the $6,600 level, with each high momentum (of which there were three) with lower purchase volumes, which were hurting the bull. Not to mention that the three impulses did not reach the apparent support area near the high $8,000. Therefore, he stated that "the party is over."

Johnny Mo noted that the recent price action satisfies a growing wedge he drew on his chart. Growing wedges are recession patterns seen in financial markets that are often less derogatory. A disadvantage of the triangle may be that BTC will recover $6,000.

Fundamentals Back Narrative Bearish

It seems that the story of the recession in the fundamentals is back, unfortunately. Earlier this week, the Korean exchange Upbit reported in an announcement that 342,000 Ethereum transactions (worth $50 million) were suspicious. The translated version of the related release did not include the word "hack". Although many have taken the statement as an indication that $50 million in cryptocurrencies have wrongly granted and currently cannot be recovered.

Upbit has confirmed that it will cover up to $51 million of its corporate funds, and has also revealed that it has transferred all cryptocurrencies to its cold wallet to protect its customers.

Some suggest that the sales pressures of this event may suppress the cryptocurrency market in the coming weeks.