Bitcoin’s price yesterday was $6,571 (£5,080) at its height, which dropped 2 percent to $6,436 (£4,976) over 24 hours.
While that difference may not be much, the fact the price dipped below a key price point – known as a horizontal support – could be interpreted as a sign of an imminent slump in BTC’s value, or something referred to as a “breakout from the downside”.
A breakout refers to a security’s price movement through a historical resistance level.
Nikola Lazić, an expert in Crypto-currency has predicted a downside breakout, which means the price could be on the verge of a plunge. The expert said, “I am expecting a breakout from the downside because the horizontal support has already been broken today, the red triangle’s support has been broken in the past when the price found support on the symmetrical triangle’s uptrend line which was respected in the past. If that last support gets broken, then we are definitely seeing a lower low which would be below $5767 (£4,458). It could get really bad.”
The world’s leading cryptocurrency has experienced a turbulent year as its price continues to fluctuate.
At the time of writing, bitcoin was trading at $6,573.26 (£5,083)
The digital asset has performed relatively poorly this year in comparison to 2017.