Bear Houvast Strengthens spil Bitcoin Price Nears $10K

Having closed below a key long-term moving average yesterday, bitcoin (BTC) prices look set to explore sub-$Ten,000 levels.

Prices on CoinDesk’s Bitcoin Price Index fell to a low of $Ten,050.79 yesterday and dipped below $Ten,000 soon before publishing. At press time, BTC had bounced back to $Ten,150 levels. The cryptocurrency has depreciated by 11.70 procent te the last 24 hours, according to gegevens source OnChainFX.

On Coinbase’s GDAX exchange, BTC kasstuk a five-day low of $Ten,025 yesterday. The sell-off gathered rhythm after prices breached strong support at $11,000 (confluence of 100-day moving average (Mamma) and 61.8 procent Fibonacci retracement). Also, BTC closed (spil vanaf UTC) below the 100-day Moe for the very first time since July.

Looking ahead, the price chart analysis favors a pauze to further below $Ten,000 levels.

Bitcoin chart

The above chart (prices vanaf Coinbase) shows:

  • The decline from the weekend high of $13,000 has left another lower highs (bearish) pattern on the daily chart. Further, prices closed below 100-day Mamma. Both likely reinforcing the bears.
  • Prices closed (spil vanaf UTC) below $11,004 (61.8 procent Fibonacci retracement of the rally from $Five,511.11 to $Nineteen,891.99), signaling potential for more losses ahead.
  • The 50-day Moeder has topped out (has shed bullish bias).
  • The 5-day Moeder and 10-day Moe carry a strong bearish bias (sloping downwards).
  • The bearish crossover inbetween the 5-day Mamma and 100-day Mama is likely to toebijten soon.
  • The accelerated trendline (drawn from Jul. 16 low and Sep. 15 low) is likely to opoffering support around $9,100 levels today.

It is worth noting that ter 2018, dips to or below the 100-day Mamma were short-lived and followed by a acute rally. For example, prices closed (spil vanaf UTC) below the 100-day Mamma on Jul. 16 only to recover sharply on the following day. BTC then proceeded to set fresh record highs by mid-August.

However, things look different this time. To commence with, BTC witnessed a acute recovery from sub-100-day Mama levels on Jan. 17, but the follow-through has bot feeble. BTC faced rejection at $13,000 (weekend high) and closed (spil vanaf UTC) below the 100-day Mama yesterday. Clearly, the bears show up to be ter control.

Also, spil seen ter the latest past (Jan, 22, Jan. 17, Jan. 16 and Dec. 22), dips below $Ten,391 (50 procent Fibonacci retracement of 2018 low to 2018 high) have bot transient. Again, the level could be breached convincingly this time, courtesy of the bearish chart set up spil listed above.

  • BTC looks set to test the rising trendline support of $9,100 overheen the next 48 hours. A disturbance there would expose $8,148.79 (61.8 procent Fibonacci retracement of 2018 low to 2018 high).
  • A corrective rally is likely to be capped around the $12,000 mark, spil suggested by the downward sloping 5-day Moeder and 10-day Mama.
  • Only a close (spil vanaf UTC) above $13,000 would abort the bearish outlook.

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