Why Did Bitcoin Break Down From $9,000, and Where Is It Heading?

As Bitcoin's price floats in the waters of uncertainty in the low $8,000 range, one might wonder how crypto's largest asset found itself at the bottom of a steep drop after its exuberant price rise from $3,330 to $13,880 earlier in 2019.

After its June 26 price high at $13,880, Bitcoin formed a descending triangle, followed by multiple months of consolidation.

Bitcoin's Sept. 24 tumble also occurred just one day after Bakkt launched its physically-settled Bitcoin futures product.

Ledger Status explains the market was due for actionAccording to crypto analyst and podcaster Brian Krogsgard, also known as Ledger Status on Twitter, Bitcoin was due for some activity.

During its breakdown, Bitcoin punched through an important moving average, possibly accelerating the drop.

"Support breaking is bearish; it's not good," the analyst said of Bitcoin's move down.

Where to next?Bitcoin sits in the lower $8,000 range as it sets up for its next move, which Krogsgard noted possibly could be down to $5,000 or $6,000.

Such a drop would signal the end of a complete measured move for Bitcoin buyers have shown up to defend lower prices so far.

Even if Bitcoin follows this route down to $5,000 or $6,000 the trend can still technically be seen as bullish.

The analyst also noted that prices under $6,000 might represent a notable opportunity to pick up more Bitcoin.