Bitcoin Price Drop to $2.5K Possible if Bulls Fail to Retake $7,350

Bitcoin price took a seemingly unexpected turn over the last week as the digital asset shed nearly $2,000 over the past 5 days.

Last Sunday Bitcoin looked strong with a peak at $8,727 but by Friday the price found a floor at $6,776.

With a drop of 22% within just 5 days, can investors expect a bounce to reclaim the lost ground, or will Bitcoin head to new lows to close out 2019? Let's take a look at what could happen next.

It's hard to gauge whether the current price swings are perfectly normal, or maybe, just maybe it's some dude selling a lot of Bitcoin to buy something.

Whether it's actual Asian sellers or Western investors panic selling is anyone's guess, but it is worth noting that from a technical perspective Bitcoin price could be perceived as behaving as expected.

Using the Bollinger Band moving average as a level of support in the $6,900 region, one can see that despite breaking through ever so slightly, Bitcoin price still bounced up from this level both on Nov. 22 as well as today.

One can infer that the price was rejected at the moving average suggesting Bitcoin price is still ranging between the moving average and the resistance, which is currently at $11,450.

Just one month ago Bitcoin price jumped from $7,500 to $10,000 in 24 hours out of the blue, and as far as the monthly chart was concerned, nothing was out of the ordinary.

If Bitcoin had maintained upward momentum investors would be looking for a bullish cross at this time, however not even the monster price pump at the end of October was enough to pull the digital asset back into bull territory.

From this point, Bitcoin will need to hold $7,350 for there to be any light for the bulls.