Bitcoin price has been on a wild ride throughout 2019, coming from bear market lows around in the $3,000 range all the way up to $14,000 before falling back below $10,000 and potentially looking at further downside if bulls cannot reclaim lost territory.
This morning, Bitcoin price plummeted through $10,000 after a spike to $10,200 following last night’s daily close was rejected fiercely. The rejection sent Bitcoin sharply down to $9,500 where it is currently trading. With bulls in trouble of allowing bears to regain control, reclaiming upside targets in the coming days will be especially important if Bitcoin is to resume its bullish uptrend.
Bullish Case: Buyers Are Ready to Step in and Buy the Dip at $8,500
Since Bitcoin left its bear market lows in April and went on a parabolic rally, crypto investors and traders have been in “buy the dip mode.” In previous bull markets, BTC rarely corrected more than 30%, and typically when it did it was the best buying opportunity. The strategy has been engrained into the masses, and they are putting their money where their mouth is and have been buying the crypto asset each time it drops, helping it to continue its rally.
With $10,000 currently lost, $10,200 is currently the resistance needed to break back above to restore the confidence in bulls. Above there, upside targets of $11,750 and $12,500 would need to be reclaimed before an re-attempt to take $14,000 and set new all-time highs occurred, but at that point would be a high probability.
Support exists at $9,200, $8,500 where buyers are targeting their orders, and below it at $7,750 and $6,000. Any of these supports could provide a strong bounce to take Bitcoin back to highs.
Bearish Case: Bears Have Regained Control Over Bitcoin Price
Given Bitcoin’s bullish rise thus far, and having come out of bear market lows, the first ever crypto asset very well could revisit recent highs quickly and even overcome resistance above. It’s done so repeatedly this year.
However, with bears in this much control and after a few nasty rejections each time Bitcoin price tried to reclaim highs, the bearish case has been given more probability in recent days. A break of $9,200 where BTC bounced previously would certainly send it to test resistance turned support lower.
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These downside targets exist at $7,750 and $6,000, however, buyers appear to be ready to step in at $8,500 – a theory that may be put to test in the coming days as downside momentum picks up.
The bearish sell pressure likely comes from US investors fearing the worst when it comes to crypto. US citizens are fearing coming regulation, uncertainty around the IRS and taxes in light of some threatening letters that went out, and having witnessed the entire asset class trashed by the president, much doubt.