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

Aayush Jindal

1 year ago

2 mins read

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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.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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