Bearish pressure is weighing heavily on Bitcoin, pushing it down from nearly $9,800 to $8,150 in less than a day.
The Bitcoin price crash happened on overnight trading, falling almost $1,500 in just half an hour. At the time of this writing, the world’s most popular cryptocurrency traded at $8,349.
The BTC/USD is now showing early signs of recovery from the $8,100, the lowest price in months. Bitcoin’s speedy decline below $9,800 is the latest reaction of a series of downward events pulling the price lower since the start of September.
Cryptocurrency analysts have warned in the last couple of hours about a potential test of the $7,500 support. If that mark is broken, then a downward extension to $4,000 might be in sight.
The bearish forecast is supported by the CEO of Euro Pacific Capital, Peter Schiff, who claims further losses are on its way.
“Bitcoin has finally broken below the support line of the large descending triangle it has been carving out for months. This is a very a bearish technical pattern, and it confirms that a major top has been established,” he wrote.
Yet, cryptocurrency enthusiasts are used to Schiff’s negative rhetoric. In the recent past, he’s been criticizing Bitcoin repeatedly when compared to gold, one of his prime investments.
For the moment, Bitcoin seems to be stabilizing around the $8,350 price mark. The cryptocurrency market cap stands at $219 billion at press time, having trimmed a huge $20 billion.