Why Bitcoin traders are considering a bigger drop as BTC price falls 30% in past month

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The Bitcoin price has fallen by nearly 30 percent since rising to as high as $10,600 in October.

On Oct. 21, due to a cascade of short liquidations on major margin trading platforms like BitMEX, the Bitcoin price spiked above the key psychological level of $10,000.

Bitcoin has struggled to regain momentum, dropping below an important support level of $7,700 in the past two days and becoming vulnerable to a larger correction to the $6,300 to $6,800 range.

Is a drop below $7,000 for Bitcoin likely at this point?

Possibly due to the low volume and the intensity of the selling pressure, the Bitcoin price has not shown substantial short term spikes to the upside to test key resistance levels.

In the near future, as said by technical analysts like Josh Rager, the failure of Bitcoin to maintain a crucial level at $7,700 is likely to cause a drop to the $6,000 region, with traders considering $6,800 as an imminent target.

"Bitcoin price at a key area with monthly support area at $7725 and the current VWAP is at $7717 This marks more of a realistic value for Bitcoin & I'm hopeful as long as price stays above $7700 - if not, I see price hitting $6ks.".

As factors of the decline and the potential drop of bitcoin, analysts point towards BTC dropping below the breakeven price of mining that is said to be above $8,000 and the noticeable decline in volume in the market in general.

Following the plunge of the Bitcoin price almost overnight, the price of Ethereum has dropped from $180 to $155, by around 14 percent against the U.S. dollar.

Both against Bitcoin and the U.S. dollar, most major alternative cryptocurrencies like XRP, ETH, and Bitcoin Cash have performed poorly in the past several days.