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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 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.
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
Image Credit: Refer to Source
Author: Refer to Source Aayush Jindal