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 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.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
