Bitcoin Price Drop to $8.9K Raises Fear of a New Bear Trend Beginning

The price of Bitcoin (BTC) dropped to as low as $8,900 on May 21 following a strong rejection of the $9,800 level. Traders say BTC’s breakdown from the $9,200 support level may lead to a renewed downtrend.

Almost every macro indicator points to a correction

In the near-term, traders generally expect that a correction will occur in the Bitcoin market. Almost every macro trendline, indicator, and momentum oscillator points toward an imminent correction.

When the price of Bitcoin initially dropped below $9,200, it fell under a key Bollinger Band line, which often marks a key pivotal point. If a bullish trend is ongoing, then an asset is expected to recover at the middle Bollinger Band line.

BTC USD daily chart. Source: Big Chronis Trading

But, in the case of Bitcoin, it fell straight through it and dropped to $8,900 in quick succession. As such, it risks a fall to the lower end of the Bollinger Band, in the mid-$8,000 area.

According to Bitcoin trader Jonny Moe, the Bitcoin price is at…