Bitcoin

Key Reasons Why Bitcoin Could Nosedive Below $10,000 In Near-Term

Bitcoin price failed to correct higher and declined further below $ 10,200 against the US Dollar. BTC remains at a risk of more downsides below the $ 10,000 support.

  • Bitcoin broke the $ 10,250 and $ 10,200 support levels to move further into a bearish zone.
  • The price is now trading below $ 10,300 and the 100 hourly simple moving average.
  • There was a break below a connecting bullish trend line with support near $ 10,440 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is currently correcting higher, but the previous support near $ 10,300 and $ 10,450 could prevent gains.

Bitcoin Price is Extending Losses

Yesterday, bitcoin price made another attempt to clear the $ 10,500 resistance zone, but it failed against the US Dollar. BTC traded as high as $ 10,528 and recently started a fresh decline.

There was a break below the $ 10,400 and $ 10,300 levels. The decline gained pace after there was a break below a connecting bullish trend line with support near $ 10,440 on the hourly chart of the BTC/USD pair.

Bitcoin price even broke the $ 10,200 support level and settled well below the 100 hourly simple moving average. A new weekly low is formed near $ 10,135 and the price is currently correcting higher. It broke the 23.6% Fib retracement level of the recent decline from the $ 10,528 high to $ 10,135 low.

Bitcoin

Bitcoin price breaks $ 10,300. Source: TradingView.com

However, the previous support zone near the $ 10,300 level is now acting as a strong resistance. The 50% Fib retracement level of the recent decline from the $ 10,528 high to $ 10,135 low is also near $ 10,336.

If there is an upside break above $ 10,350, the price could recover towards the $ 10,450 level. The main resistance is still near the $ 10,550 level and a connecting bearish trend line on the hourly. As long as the price is below the $ 10,550 level, there is a risk of a larger decline.

More Losses in BTC?

If bitcoin fails to recover above the $ 10,350 and $ 10,550 levels, it could continue to move down. An initial support is near the $ 10,200 and $ 10,100 levels.

The main support is near the $ 10,000 level. If the bulls fail to protect the $ 10,000 support, there is a risk of a sharp decline towards the $ 9,500 and $ 9,200 levels in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly moving into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is recovering and it is near the 40 level.

Major Support Levels – $ 10,200, followed by $ 10,100.

Major Resistance Levels – $ 10,350, $ 10,450 and $ 10,550.

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Bitcoin – NewsBTC

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