Bitcoin Crashes Back to $7.4K Completely Wiping Out the October Rally

Bitcoin finally dropped all the way down to the $7.4Ks in minutes as anticipated in our previous analysis if the key $7.8K level did not hold.

Over the past week, BTC/USD has faced a slow grind down to the $8,000 price level.

Now, Bitcoin also broke below its 0.786 Fibonacci retracement level as well - its last major level before a confirmed full retrace of the Oct. 25 rally to $10,500.

After a short bounce, Bitcoin has bounced back to around $7,600 at press time.

After several days of choppy price action, BTC/USD finally posted a decisive drop below $8,000 falling under its 0.786 Fibonacci retracement level at $7,870 and plummeting all the way down to $7,390.

If Bitcoin falls further below $7,307, it may indicate its bullish swing up to $10,500 on Oct. 25 was a fluke, resulting in net sideways action for the past month.

On a bullish note Bitcoin did not yet breach the previous low and bounced with a fair bit of strength from $7,390 up to $7,640.

If Bitcoin continues to tumble $7,230 may provide a bit of support.

At the bottom of the last bear market in 2018, Bitcoin's 200-week MA acted as strong support near $3,200.

BTC has not closed below its 200-week MA since 2015.Tezos stands out.