Bitcoin fell sharply on September 24, Tuesday, confirming that a bearish reversal and opening the doors for a test of crucial price support near $7,500.  

It has been reported that the leading cryptocurrency by market value ran into selling pressure around $9,700 in the early U.S. trading hours and fell to a 3.5-month low of $7,998 at 19:45 UTC on Bitstamp.

As discussed earlier this week, BTC had been on the slippery ground following Tuesday’s volatility band breakdown. A widely-followed indicator was also reporting the strongest a bear bias in nine months.

The price slide was likely troubled by a long squeeze, when investors struggled to sell long positions to cut losses in a falling market, thus creating further downward pressure on prices.

However, while a price drop was expected, the magnitude of the sell-off has caught many by surprise. The cryptocurrency fell by 11.83 percent on Tuesday – 2019’s third-biggest single-day drop, as per Bitstamp data.

Image Source: Coindesk

This year, BTC has seen double-digit daily losses four times. The biggest single-day loss of 2019 witnessed on June 27 marked a healthy correction from a 17-month high of $13,880 reached on the previous day.

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Likewise, the latest double-digit price slide has taken the cryptocurrency below major support levels. Therefore, a deeper drop toward $7,500 – a level seen a week ahead of Facebook’s launch of Libra – could be seen over the next few days.

It has also been reported that BTC is changing hands around $8,400 on Bitstamp. It’s worth noting that the cryptocurrency is still up about 127 percent on a year-to-date basis.

Currently, prices are hitting with the 200-day moving average (MA) support at $8,309. That long-term MA has come into play for the first time since April and will likely be cracked, as the post-triangle breakdown price drop looks to have legs – volumes hit three-month highs on Tuesday.

Therefore, BTC risks extending losses to support at $7,500 – lows seen before Libra hype grasped the market in mid-June.

Peter Schiff, the CEO of Euro Pacific Capital

Furthermore, the triangle breakdown could fetch a drop to $4,000, as tweeted by bitcoin skeptic and Peter Schiff, the CEO of Euro Pacific Capital. However, that target looks far-fetched.

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