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Bitcoin Price (BTC) Showing Signs of Weakness, Could Test $10K

Avatar Aayush Jindal 8 months ago
  • Bitcoin price failed to accelerate above $10,700 and declined recently against the US Dollar.
  • The price broke the key $10,500 and $10,400 support levels to move into a short term bearish zone.
  • There is a new bearish trend line forming with resistance near $10,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price could continue to slide towards the $10,000 and $9,800 support levels in the near term.

Bitcoin price is showing a few bearish signs below the $10,500 support against the US Dollar. BTC price might soon test the key $10,000 support level, where the bulls could emerge.

Bitcoin Price Analysis

Recently, we saw an upward move in bitcoin price above the $10,500 level against the US Dollar. The BTC/USD pair even traded above the $10,600 level, but it failed to surpass the $10,700 resistance. A swing high was formed near $10,687 and the price started a fresh decline. Yesterday, we discussed the chances of a downside thrust and it seems like the current bearish wave could extend below $10,200.

During the decline, there was a break below a bullish trend line forming with support near $10,470 on the hourly chart of the BTC/USD pair. The pair even settled below the $10,500 level and the 100 hourly simple moving average. Finally, the price broke the $10,200 support level and spiked towards $10,100. A swing low was formed at $10,076 and the price is currently correcting higher.

It broke the 23.6% Fib retracement level of the recent drop from the $10,687 high to $10,076 low. However, the price is struggling to break the $10,400 resistance level. Moreover, there is a new bearish trend line forming with resistance near $10,350 on the same chart. Besides, the price was rejected near the 50% Fib retracement level of the recent drop from the $10,687 high to $10,076 low.

The current price action seems bearish, suggesting more losses below $10,200 and $10,100. The price might even spiked below the $10,000 support area. The next important support below $10,000 is near the $9,800 level.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is clearly facing a lot of hurdles near $10,400 and $10,500 (the previous supports). To start a decent upward move, the price needs to surpass the $10,500 resistance and the 100 hourly SMA. If not, there is a risk of a downside extension below $10,000 in the near term.

Technical indicators:

Hourly MACD – The MACD is showing negative signs in the bearish zone.

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

Major Support Levels – $10,000 followed by $9,800.

Major Resistance Levels – $10,400, $10,500 and $10,800.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial...

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