Bitcoin’s price action has proven to be quite bearish as of late after it failed to hold above its key support level around $10,000. The drop below this level has led BTC to a key support level in the $9,000 region, and a failure to hold above this support level could lead to a massive movement lower.
Analysts are ruling out a full retrace down to $4,000, however, and are noting that there could be a near-term bullish scenario if BTC is able to hold above $9,400.
Bitcoin Plummets Below $10,000 as Sellers Flex Their Strength
At the time of writing, Bitcoin is trading down over 3% at its current price of $9,600, which marks a notable retrace from its daily highs of just under $10,000.
Because Bitcoin has been unable to find any sustainable upwards momentum within the five figure price region, bears have been able to gain the upper hand over the cryptocurrency’s bulls, which appear to have lost much of their strength as BTC once again revisits its historical support region in the lower-$9,000 region.
A failure to hold strong above this support level will likely lead to a bout of capitulation that sends the crypto reeling significantly lower, but analysts are noting that there is a bullish near-term scenario that could bolster BTC’s bulls.
The Cryptomist, a popular crypto analyst on Twitter, spoke about this possibility in a recent tweet, explaining that a strong bounce from $9,400 could spark some bullish momentum.
“$Btc Hmm looking again there may be a bullish scenario? Long bottom wick too 9.4k region, with candle close on support of falling wedge RSI. Then breakout to cover 11.8k gap? Will know between this & last post, which is valid, from btc next move,” he explained in a recent tweet.
Hmm looking again there may be a bullish scenario?
Long bottom wick too 9.4k region, with candle close on support of falling wedge RSI
Then breakout to cover 11.8k gap?
Will know between this & last post, which is valid, from btc next move pic.twitter.com/hRsmxV6FBO
— The Cryptomist (@TheCryptomist) September 24, 2019
BTC Unlikely to Face Deep Retrace to $4,000
Assuming that $9,400 does not hold as a strong level of support and that Bitcoin faces a significant influx of selling pressure, some analysts have noted that BTC could erase a significant amount of the gains it incurred throughout the first half of 2019.
Despite this, Mayne, another popular crypto analyst on Twitter, spoke about this possibility in a recent tweet, explaining that he believes it is highly unlikely.
“$BTC Seeing a lot of $4k charts today. I don’t like to speak in absolutes but I don’t see us dropping that low. We’re in an uptrend and have been consolidating for 90 days. Just because it’s a descending triangle doesn’t mean we fully retrace the move, market conditions matter,” he noted.
Seeing a lot of $4k charts today.
I don’t like to speak in absolutes but I don’t see us dropping that low. We’re in an uptrend and have been consolidating for 90 days. Just because it’s a descending triangle doesn’t mean we fully retrace the move, market conditions matter.
— Mayne (@Tradermayne) September 24, 2019
How Bitcoin reacts to its key near-term support levels in the coming hours and days will prove to be critical for determining its near-term trend.
Featured image from Shutterstock.
