$9,000: Bitcoin Breakdown Might Be The Real Deal As Altcoins Plunge

Aayush Jindal

1 year ago

2 mins read

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Bitcoin was rejected near the $10,500 area against the US Dollar. BTC could extend its decline as Ethereum and ripple are down more than 10%.

Bitcoin price is under pressure below the $10,000 support area against the US Dollar.
The bears seem to be in control as the price even failed to stay above $9,800.
There is a short term declining channel forming with resistance near $9,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
Ethereum and ripple are gaining bearish momentum and are down 11% and 15% respectively.

Bitcoin Showing Bearish Signs

After a strong rejection near the $10,500 area on two occasions, bitcoin price started a fresh decrease against the US Dollar. BTC price broke a few key supports near $10,200 and $10,000 to enter a bearish zone.

Moreover, there was a close below $10,000 and the 100 hourly simple moving average. The price even failed to stay above the $9,800 support area and it declined towards the $9,600 support.

A swing low is formed near $9,632 and the price is currently correcting losses. It surpassed the 23.6% Fib retracement level of the recent slide from the $10,400 high to $9,632 low.

However, bitcoin is facing hurdles near the $9,900 and $10,000 levels. More importantly, there is a short term declining channel forming with resistance near $9,900 on the hourly chart of the BTC/USD pair.

Besides, the 50% Fib retracement level of the recent slide from the $10,400 high to $9,632 low is near the $10,000 area to act as a key resistance. The main resistance for bitcoin is near the $10,120 level and the 100 hourly simple moving average.

Therefore, a successful break above $10,000 and then a follow up move above the 100 hourly simple moving average is needed for a fresh increase towards $10,500 in the near term.

More Losses As Ethereum and Ripple Plunge?

As mentioned, Ethereum and ripple are declining heavily, which may perhaps increase pressure on bitcoin below $9,800. If it slides below the $9,600 support, the bears could even aim a break below the key $9,500 support level.

Finally, a convincing break below the $9,500 area is likely to set the momentum for a run towards the $9,000 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.

Major Support Levels – $9,600 followed by $9,500.

Major Resistance Levels – $10,000, $10,100 and $10,120.

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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