Bitcoin At Potential Risk of Breakdown Below $10,000: Here’s Why

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price traded to a new monthly low at $9,853 before correcting higher against the US Dollar. BTC is still following a bearish pattern and it is likely to accelerate lower below $10,000.

Bitcoin is trading in a bearish zone below the $10,800 and $10,500 support levels.
The price is facing a strong resistance near $10,500 and the 100 hourly simple moving average.
There is a major declining channel forming resistance near $10,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to resume its decline as long as it is below $10,300 and $10,500.

Bitcoin Price Remains At Risk

In the past few days, there was a strong decline in bitcoin price below the $10,800 support against the US Dollar. BTC even settled below the $10,500 support and the 100 hourly simple moving average.

A new monthly low is formed near $9,853 and the price is currently consolidating losses. There was a short-term upside correction above the $10,000 and $10,050 levels. Bitcoin recovered above the 50% Fib retracement level of the recent decline from the $10,640 high to $9,850 swing low.

However, the price is facing hurdles near the $10,400 level. There is also a major declining channel forming resistance near $10,300 on the hourly chart of the BTC/USD pair.

Bitcoin price trades below $10,300. Source: TradingView.com

The channel resistance is close to the 61.8% Fib retracement level of the recent decline from the $10,640 high to $9,850 swing low. A clear break above the channel resistance could send the price above the $10,350 level.

Conversely, the price might continue to move down below $10,100 and $10,050. The main support is near the $10,000 level. A daily close below the $10,000 support may perhaps start a strong decline towards $9,800 and $9,600 in the near term.

Chances of a Recovery in BTC?

The first major hurdle for bitcoin is near the channel resistance and $10,300. The next key resistance is near the 100 hourly SMA and the $10,500 level.

A successful close above the $10,500 is needed for a fresh increase in the coming sessions. In the stated case, the price might recover towards the $11,000 resistance zone.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently struggling to stay above the 50 level.

Major Support Levels – $10,050, followed by $10,000.

Major Resistance Levels – $10,300, $10,400 and $10,500.

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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