Analysis

$9,000: Bitcoin Breakdown Might Be The Real Deal As Altcoins Plunge

Bitcoin was rejected near the $ 10,500 area against the US Dollar. BTC could extend its decline as Ethereum and ripple are down more than 10%.

  • Bitcoin price is under pressure below the $ 10,000 support area against the US Dollar.
  • The bears seem to be in control as the price even failed to stay above $ 9,800.
  • There is a short term declining channel forming with resistance near $ 9,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • Ethereum and ripple are gaining bearish momentum and are down 11% and 15% respectively.

Bitcoin Showing Bearish Signs

After a strong rejection near the $ 10,500 area on two occasions, bitcoin price started a fresh decrease against the US Dollar. BTC price broke a few key supports near $ 10,200 and $ 10,000 to enter a bearish zone.

Moreover, there was a close below $ 10,000 and the 100 hourly simple moving average. The price even failed to stay above the $ 9,800 support area and it declined towards the $ 9,600 support.

A swing low is formed near $ 9,632 and the price is currently correcting losses. It surpassed the 23.6% Fib retracement level of the recent slide from the $ 10,400 high to $ 9,632 low.

However, bitcoin is facing hurdles near the $ 9,900 and $ 10,000 levels. More importantly, there is a short term declining channel forming with resistance near $ 9,900 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Bitcoin Price

Besides, the 50% Fib retracement level of the recent slide from the $ 10,400 high to $ 9,632 low is near the $ 10,000 area to act as a key resistance. The main resistance for bitcoin is near the $ 10,120 level and the 100 hourly simple moving average.

Therefore, a successful break above $ 10,000 and then a follow up move above the 100 hourly simple moving average is needed for a fresh increase towards $ 10,500 in the near term.

More Losses As Ethereum and Ripple Plunge?

As mentioned, Ethereum and ripple are declining heavily, which may perhaps increase pressure on bitcoin below $ 9,800. If it slides below the $ 9,600 support, the bears could even aim a break below the key $ 9,500 support level.

Finally, a convincing break below the $ 9,500 area is likely to set the momentum for a run towards the $ 9,000 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.

Major Support Levels – $ 9,600 followed by $ 9,500.

Major Resistance Levels – $ 10,000, $ 10,100 and $ 10,120.

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Analysis – NewsBTC

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