BTC Price Drop below 10K USDDavid Kemp
Crypto market analysts are now doing research trying to find out further movements in the crypto industry. According to many experts, the price of the top-ranked cryptocurrency is at risk – all statistics prove that there is a chance of BTC falling below ten thousand USD. This becomes possible if the current situation and support level do not manage to remain.
As the previously indicated price wasn’t able to break through and the same level of resistance showed twelve thousand USD, a retracement was an event many participants would expect to see. The latest trend didn’t come as a shock to thousands of traders. Lately, the pair of Bitcoin and U.S. dollar moved back to eleven thousand four hundred, which is a correction of approximately ten percent.
Other units and commodities, including precious metals, are correcting, too. This is occurring due to a slight move taken by the DXY. More than that, LINK is considered to be one of the heavy movers. The same applies to XTZ. Both these assets demonstrated serious changes and corrections in the past few days.
Analysts are willing to find out if this can be the right period to purchase the dip. As a matter of fact, some participants state that further reviews are considered to be inevitable. BTC is the currency that rejected at eleven thousand eight hundred USD after returning back in the previously approached range. Moreover, the price of the asset wasn’t able to force any kind of breakout above the twelve-thousand-USD level of resistance. This, in turn, led to a relatively prompt fall back into the range.
Failure to Sustain Support
Many mass media outlets have previously analyzed and mentioned that the twelve-thousand-USD area was of utmost importance to remain for further upward momentum. Unfortunately, the data shows the asset did not sustain this level and this only shows that an upcoming pullback is likely to occur.
Right after the breakdown below twelve thousand, the price moved towards the support line at eleven thousand six hundred USD. This level would result in a moderate bounce toward eleven thousand eight hundred USD. On the other hand, as many diagrams illustrate, the mentioned area was described as a new level of resistance. Flips of this kind usually mean further downside.
The reason why this happens is because the buyers do not feel strong enough to push the price above that level. Since the move is weak, participants believe that more support levels may get tested. That’s what really happened – the top-ranked cryptocurrency fell toward the following support level located in the green zone. There was another crucial hurdle before a relatively sudden fall to ten thousand USD. As many specialists state, this key support level should hold for some time.
Divergence seems bearish and it is promising a potential trend reversal. Despite this fact, it is not yet confirmed as long as the market begins to reach new lows. Professionals take into consideration the importance of the daily timeframe. It’s essential to note that the recent low remains at between eleven thousand two hundred USD and eleven thousand three hundred USD. At present, the market has to remain above the green area.
If the crypto’s price falls below that zone, then the following support level will be seen at between nine thousand six hundred USD and ten thousand USD. Professionals predict more pain for the majority of bulls in the nearest future.
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