Bitcoin begins violent descent to $8,350

Bitcoin is in a precarious position after breaching the critical $10,000 level of support.

The symmetrical triangle that has been forming since June has now broken to the downside, indicating a new bearish phase in the market.

While the $9,350 level has been a level of support in the past, it’s up against intense selling pressure and could well be broken in the coming days.

If this level breaks, Bitcoin could experience a sharp drop in price, with the 200 EMA on the daily chart at $8,350 being a logical level for a bounce.

The 50 EMA on the weekly chart could also come into play. It’s currently at around $7,500 and could be a key point of support as it was previously a level of resistance prior to April’s breakout.

While the technical aspects of Bitcoin’s charts are almost certainly ticking down, news this week of Craig Wright’s lawsuit with the Kleiman Estate could also spur further price action to the downside.

Wright reportedly has to pay $5 billion in Bitcoin to the Kleiman Estate, who will be forced to liquidate it in order to pay Florida State tax.

With just $100 million in the order books between Bitcoin’s current price and $8,600, a heavy sell order from the Kleiman estate could well knock Bitcoin to new yearly lows, with $3,800 and $1,800 being key levels of support if a capitulation low plays out.

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