Posted 1 year ago | by Ben Armstrong

Bitcoin Price Drops Below $8500 USD – Bulls Wait for Bounce

The cryptocurrency market is under short-term pressure. Bitcoin just slid under $8500. All the big digital tokens are struggleing with losses ranging from 1% to 6%. While Bitcoin might suffer losses in a short-term, on the other hand, NEM (XEM) is in the green after the price has shot higher by 8% in the last 24 hours.

On Wednesday, NEM soared 20% on news that the network had established a partnership with a popular online travel company. In addition to 20 other cryptocurrencies the Travala collaboration will see XEM used in hotel bookings.

Bitcoin ETF Still a No-Go

The expectations of getting the first exchange-traded Bitcoin fund (ETF) were dashed. Most of the requests submitted to the Securities and Exchange Commission (SEC) were rejected.

An analyst, Ryan Selkis claims that "we'll finally see a Bitcoin ETF in the next 12-18 months." Selkis predicts it's Grayscale that's going to get the first go ahead. Developments over the past three months have put Grayscale in good books.

Possible Technical Damage

Bitcoin may be making a comeback from below $8,500. Bitcoin soared briefly above $8,600 before continuing a bearish move lower. Unfortunately, development upward stopped shy of $8,700. The decreasing trendline, may suggest more consolidation in the near-term

It seems that bulls remain in control despite the recent drop. As long as the support holds at $8,000 Bitcoin still has the potential to reverse in the direction of $9,000, particularly if a break occurs above the resistance of the triangles.

Supportive Geopolitical Environment

While the technical outlook for Bitcoin is mixed, the geopolitical backdrop is bullish for Bitcoin. In addition to the increased risk of all-out war in the Persian Gulf, General Haftar has just announced that any planes that fly over Tripoli, the capital of Libya, will be shot down.

Oil exports from the embattled nation remain suspended, despite the addition of Turkish-backed Syrian militia to the Libyan theater of war. General Haftar has yet to take the capital, which is his stated goal.

Bitcoin, like gold, has been supported by geopolitical turmoil. The short-term downdraft in prices may lead to a consolidation, but the longer-term picture is positive for the world's largest crypto. If the $8,000 USD level is able to hold, it may target the highs from 2019 in the coming months.