The bitcoin price lost over $1,000 in a matter of hours, down over 5%, with cryptocurrency traders eyeing sharper falls for other major tokens ethereum, Ripple's XRP, litecoin and chainlink-all down over 10%.

 

With bitcoin dropping under $18,000 per bitcoin for the first time this month, traders are asking how low could it go?

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The bitcoin price has dropped sharply in the last 24 hours, with the likes of ethereum, Ripple's XRP, litecoin and chainlink recording even steeper falls.

The bitcoin and cryptocurrency market has been searching for direction over the last week after bitcoin's November bull run stalled at just under $20,000 per bitcoin.

 

The latest move lower, that has seen bitcoin fall as low as $17,7800 on the Luxembourg-based Bitstamp exchange before somewhat rebounding, could mean bitcoin has given up a key support level.

"$18,500 to $18,600 is the line in the sand which will determine the next price movement with the price having the potential to range between $18,500 and $19,000," Ray Youssef, the chief executive peer-to-peer bitcoin and cryptocurrency exchange Paxful, said via email.

"If the price breaks down then we risk going as low as $14,000-$17,000. Contrarily, $17,300 seems like the next area for buyers to step in on the down curve if the price drops bear. In short, support at 18,500 is key.

Generally, these triangle patterns will tighten and consolidate until there is a decision for the price to break hard up or hard down from where it concludes. Hard to predict where it will go but I expect a rapid bounce back even if it hits the bottom."

Coinbase

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The bitcoin price crashed under $18,000 per bitcoin after starting the week at over $19,000, with ethereum, Ripple's XRP, litecoin, and chainlink recording even sharper falls.

Despite bitcoin's recent dive, there is reason for bullishness.

"Bitcoin's reserve risk is still low, suggesting that the bull market may just be getting started," cryptocurrency analysts at data provider Glassnode wrote in their weekly newsletter. "Reserve risk is used to assess the confidence of long-term holders relative to the price of bitcoin; when confidence is high and price is low, reserve risk is low, and there is an attractive risk over reward to invest."