Analysis

Bitcoin Below $10,000 Could Start A Medium-Term Downtrend: Here’s Why

Bitcoin price declined over 15% in the past few days and it tested $ 10,000 against the US Dollar. BTC must stay above $ 10,000 to avoid more losses and a medium-term downtrend.

  • Bitcoin is trading well below the main $ 10,800 and $ 10,500 support levels.
  • The price even spiked below $ 10,000 and settled below the 100 simple moving average (4-hours).
  • There is a steep bearish trend line forming with resistance near $ 10,250 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to start a recovery wave above $ 10,250 or it could dive below $ 10,000.

Bitcoin is Testing Important Support

This past week, there was a sharp decline in bitcoin from the $ 12,000 resistance against the US Dollar. BTC broke the $ 11,200 and $ 11,000 support levels to move into a bearish zone.

The decline gained pace below the $ 10,800 support and the bears took charge. They were able to push the price below the $ 10,500 support, with a close below the 100 simple moving average (4-hours). The price even spiked below the $ 10,000 level and a new monthly low is formed near $ 9,850.

Bitcoin is currently correcting higher and trading above $ 10,000. There was a break above the 23.6% Fib retracement level of the downward move from the $ 10,640 high to $ 9,853 low.

Bitcoin

Bitcoin price breaks $ 10,000. Source: TradingView.com

The first key resistance is near the $ 10,250 level. There is also a steep bearish trend line forming with resistance near $ 10,250 on the 4-hours chart of the BTC/USD pair. The trend line coincides with the 50% Fib retracement level of the downward move from the $ 10,640 high to $ 9,853 low.

A successful break above the trend line might start a decent recovery wave above $ 10,300. The next major resistance is near the $ 10,500 and $ 10,600 levels, above which the price might turn positive.

Downside Acceleration Below $ 10K for BTC

If bitcoin struggles to climb above the $ 10,250 resistance, there are chances of more losses. An initial support on the downside is near the $ 10,050 level.

The main support is near the $ 10,000 level. A daily close below the $ 10,000 support may perhaps establish a medium-term downtrend. The next major support is near the $ 9,500 and $ 9,400 levels.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly moving into the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.

Major Support Level – $ 10,000

Major Resistance Level – $ 10,500

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Analysis – NewsBTC

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