After six days of gains, Bitcoin (BTC) experienced a precipitous drop on Wednesday, tumbling from the multi-week high of $8,460 to $7,800 in a few hours’ time. While the drop was extremely steep — 8% in literal hours — prices have remained around the high-$7,000s since, leaving many to ask what’s next for the crypto market.
Related Reading: These 4 Factors Are Building Bitcoin Price’s Colossal Bull Case
Bulls Remain in Control of Bitcoin, Say Analysts
Although some are fearing the worst after the 8% drop, a number of prominent traders are keeping their heads up high.
Dave the Wave, the prominent cryptocurrency trader who called Bitcoin’s decline to $6,400 literal months ago, noted that the cryptocurrency is looking prime to “consolidate back to the $7,000-odd [range], adding that most data he sees suggests that a macro bottom was established for the cryptocurrency.

New thread going forward for the first quarter. Looking for the spike to consolidate back to the 7K odd [green zone of the pitchfork]. All good for the low being in and prices recovering over the course of this year.
— dave the wave (@davthewave) January 9, 2020

Also, Financial Survivalism, an analyst that called this latest surge a week or so ago, noted that per his Wyckoff analysis, BTC is likely to consolidate into this range before blasting towards $9,000, thus fulfilling a textbook Wyckoff Accumulation pattern.
Not to mention, Bitcoin’s long-term fundamentals remain decisively intact. At the turn of the year, Bitcoin’s hash rate  — the measure of computational power processing BTC transactions — hit a new all-time high on the 1st day of 2020. The all-time high, 119 exahashes per second, or 119 with 18 zeroes after it.
This came shortly after TradeBlock, a cryptocurrency research and data firm, revealed that 2019 was a record year for the Bitcoin network in terms of transaction count and the value of coins sent denominated in USD value.
Related Reading: Why Bitcoin Network’s Record 2019 Is Bullish For the Crypto Market
$8,400 Was Key for Bulls
While bulls are confident, it is important to point out that $8,400 was an extremely key level from a short- and medium-term perspective, meaning that the swift rejection from that level may be bearish.
Josh Rager, a prominent cryptocurrency analyst and industry investor, for instance, pointed out that $8,400 has been a key level of support and resistance for Bitcoin over the past few months. The fact that BTC failed to regain that level on any notable time frames is, according to Rager, a sign that we are “not out of the bear woods yet” meaning that investors must take Bitcoin trades “level by level, day by day.”

Price had an initial rejection off key area $8400s that previously as resistance/support
Watching for a pullback $7800s-$7900s before a bounce and push to the upside for retest
Not out of the bear woods yet, take it level by level, day by day
— Josh Rager 📈 (@Josh_Rager) January 8, 2020

$8,400 is also where Bitcoin’s 20-week simple moving average lies, which is a moving indicator that has been key in indicating macro reversal points for BTC over the past 18 months. On the matter, an analyst going by The Moon wrote:
“This moving average has historically marked VERY important turning-points for Bitcoin, both bullish and bearish. A rejection here could lead to a break below $6,000. If broken, BTC could reach $9,450 quickly!”
Also, Teddy noted that $8,400 was also a subjective diagonal resistance level and a 200-day exponential moving average, further adding to the bearish thesis.

Once again, this is all a game of patience unless you just want to add at tops 💭
Daily was rejected from a *subjective* diagonal resistance (easy to move around to fit bias)
Clear rejection from 200EMA, this daily close will confirm rejection
— TEDDY ⛓💡 (@teddycleps) January 8, 2020

Related Reading: Bitcoin Poised to Collapse Under $5,000? Market Cycle Fractal Suggests So
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