Bitcoin Price Could Hit $8k as Major Outward On Chain Flows Increase

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As Bitcoin continues with its now tedious consolidation, analysts are still searching for the next direction. Most are siding with the bears at the moment as downwards momentum is looking more likely. One view taken from a longer term trend indicator could see BTC fall to $8k not too soon.

Bitcoin Poised to Fall

The daily outlook for BTC is as uneventful as it has been for the past week or two. The range bound trading has continued within an ever tightening channel and a break out appears to be imminent. According to Tradingview.com Bitcoin briefly touched $10,200 yesterday but has fallen back since.

bitcoin

BTC price 1 hour – Tradingview.com

BTC has now entered into another consolidation phase around the $10k level where it currently trades following an uneventful and weak Asian session. Daily Bitcoin volume has started to fall and is currently back at $14 billion.

Renowned trader and analyst, Josh Rager, has been looking at some longer term exponential moving averages for guidance. On the weekly chart the 20 and 21 EMAs have acted as solid support during the past rally and are likely to replicate that behavior during this one.

β€œThe weekly 20MA and 21EMA on the Bitcoin weekly chart are now well-known indicators that acted as support in the last uptrend. But BTC price did happen to break below the MAs twice roughly -14% & -6%. Currently, the 20MA is near $9,585 and 21EMA is near $9,230”

He added that a similar break below these indicators at the current time would cause a drop back to the $8,000 level where there are likely to be a lot of buy orders waiting.

On chain flows show an exodus across all major exchanges over the past 24 hours so a fall back blow five figures appears to be inevitable.

Elsewhere on Crypto Markets

Total crypto market capitalization is hovering just below $260 billion at the time of writing, with Bitcoin commanding just over 72 percent of it. It has been gradually sliding all week, along with total volume which also indicates more pain before any gain.

Ethereum is weakening yet again as it drops back below $180 and XRP continues to crumble towards a break below $0.25. The biggest loser in the top twenty today is Binance Coin which has dumped 6.5 percent on the day in a fall back to $20. Fears of an exodus before the launch of Binance.US, where it won’t be listed, appear to be accelerating as BNB gets offloaded.

Image from Shutterstock



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