After several days of consolidation above $8,300, the Bitcoin price fell below the major support level of $8,000 on October 16. At the time of writing, Bitcoin is trading at $7,992.99, down by 3.38%. Bitcoin lost more than $300 to the choppy trading session.
According to experts, Bitcoin’s weekly Chaikin Money Flow index is reporting the strongest bearish bias since February. Other weekly chart indicators are also calling a deeper drop, possibly to levels below recent lows near $7,750.
The daily chart indicators suggest that the corrective bounce has ended and sellers are gaining strength again. The ongoing risk aversion in the global financial markets could weigh over Bitcoin. The short-term bearish case would weaken if prices rise above the 200-day average, currently located above $8,700, although, as of now, that looks unlikely.
Since major support at $8,000 has already been broken, the next major support is near the $7,800 level, below which the price is likely to head towards the $7,500 zone, experts say.
For the last few days, experts have been discussing the chances of a possible rebound if the Bitcoin price breaks through the $8,400 resistance. However, the Bitcoin price struggled to climb above $8,400. As a result, there was a fresh decline below $8,300. Moreover, there was a break below the key $8,200 support area and the 100-hourly SMA.
In a choppy trading session on October 16, Bitcoin put an end to its sideways trend, falling several hundred dollars in minutes, confirming a downside break from the recent trading range of $8,450–$8,250.
With Bitcoin’s downfall, altcoins also followed suit. Almost all cryptocurrencies in the top-20 also fell by around 5%. Leading the losses were Tron (TRX), EOS (EOS), and Binance Coin (BNB), all of which shed between 6% and 7%. Conversely, Bitcoin SV (BSV) gained by 1%. Ether (ETH) traded 4.2% down at $176. The cryptocurrency market cap fell as a result, this time to below $220 billion, with Bitcoin’s share making up 66.4% of the total.