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Bitcoin has once again dropped to its key support level of $10,000, although each minor dip below this level over the past 24 hours has been met with relatively strong buying pressure. If BTC is unable to surge from this level, however, it could once again revisit its historically strong support region that currently exists in the lower $9,000 region.
Analyst are now noting that Bitcoin is likely to surge one more time before it drops decisively below $10,000, but if history repeats, the next drop could be met with significant buying pressure that sparks the next uptrend.
Bitcoin Dips Below $10,000 as Sellers Build Strength
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $10,070, which marks a slight recovery from its 24-hour lows of just below $10,000.
Over the past three months, BTC has been facing a bout of consolidation, with each dip towards $9,000 being met with strong buying pressure, while each movement towards $11,000 has resulted in strong and swift rejections.
This wide trading range has shown no signs of breaking anytime soon, although some analysts are pointing towards the imminent release of Bakkt’s physically settled BTC futures product as a potential catalyst for future gains.
The Cryptomist, a popular crypto analyst on Twitter, recently shared her thoughts on BTC, explaining that she expects it to break upwards towards $10,400 before facing another swift rejection that sends it to below $10,000.
“$BTC: With the 1hr RSI forming a rising wedge, I expect perhaps one more touch on the rising wedge. With 2hr time frame RSI, I expect a move upwards towards breakout within 16 hours or so. My target remains the 10.4k region,” she explained.
With the 1hr RSI forming a rising wedge, I expect perhaps one more touch on the rising wedge
With 2hr time frame RSI, I expect a move upwards towards breakout within 16 hours or so
My target remains the 10.4k region pic.twitter.com/NXSOFLwo8u
— The Cryptomist (@Thecryptomist) September 11, 2019
Could a Break Below $10,000 Spark the Next Bull Run?
Although it seems counterintuitive that a break below $10,000 could ultimately spark the next massive upwards movement, one analyst is noting the BTC’s current descending triangle could result in a downwards break that is ultimately followed by a massive upwards surge – which is a pattern seen in previous years.
B.Biddles, another popular crypto analyst on Twitter, spoke about this possibility in a recent tweet, pointing to a similar pattern that was seen in 2017.
“$BTC Descending Triangle at the peak of a bull run, 01 June 2017 – 30 July 2017 (59 days). Not hopium, just showing that it’s foolish imo to think anyone has a clear sense of what happens next (very short-term movements aside),” he noted while pointing to the below chart.
https://twitter.com/thalamu_/status/1171490631442563075
As the week continues on and BTC nears the apex of the massive descending triangle that it is trading within, it is highly likely that its fate for the rest of 2019 will soon grow increasingly clear.
Featured image from Shutterstock.
