Bitcoin Tumbles As Bears Take Control Over Market Momentum – Where To Next?
- Bitcoin saw a sudden sell over the past 2 days as it dropped from a high above $180 to as low as $9,280.
- It is attempting to bounce higher, however, the recent drop has pushed the momentum within the bearish favor.
Bitcoin dropped by a total of 8% over the past couple of days trading as it dropped back beneath the pivotal $10,000 support level. The cryptocurrency is attempting to bounce back, however, this could be the start of a further retracement lower.
Bitcoin ran into resistance at $10,360 during mid-February and has been retracing ever since. There was a slight rebound a few days ago when it bounced back above $10,000, however, the recent market sell-off has pushed it back beneath the level.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Taking a look at the daily chart above, we can see that, since our last analysis, Bitcoin rolled over from the $10,360 resistance level as it started its descent lower. It initially dropped beneath $10,000 but managed to find support at $9,637 (short term .382 Fib Retracement) which allowed it to bounce back higher.
On the rebound, Bitcoin then went on to run into resistance at $10,180 and was unable to overcome this resistance – causing it to roll over and fall again.
We can see that Bitcoin dropped as low as $9,280 before bouncing higher again. It found support at a rising trend line which will be a very important level moving forward.
Short term prediction: BULLISH
If the sellers continue to drop BTC back beneath the support at $9,656, the first level of lower support is located at $9,366 (short term .5 Fib Retracement). The support here is further bolstered by the rising trend line.
Beneath this, support lies at $9,200, $9,159, $9,095, and $9,000.
On the other hand, if the bulls bounce higher, resistance lies at $9,637, $9,185, $10,000, and $10,180.
The RSI dipped beneath the 50 level which shows that the sellers are now in charge of the market momentum. For a market recovery, we will need to see the RSI breaking back above the 50 level.
Key Levels
Support: $9,565, $9,366, $9,280, $9,200, $9,159, $9,095, $9,000.
Resistance: $9,637, $9,615, $10,000, $10,180, $10,360, $10,423.
It is attempting to bounce higher, however, the recent drop has pushed the momentum within the bearish favor.
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
Published at Thu, 20 Feb 2020 10:40:38 +0000
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