Bitcoin Bulls Are In Danger As BTC Slides Under $10,000

The latest cryptocurrency news yesterday showed that the Bitcoin (BTC) price is in  a stable position as altcoins surged and posted new gains. However, the price of Bitcoin has suddenly retraced. It seems like Bitcoin bulls are in danger now as BTC is sitting below $10,000 – a level which hasn’t been there for quite some time.

The digital asset started looking bearish on multiple time frames and it seemed like a downward move was more likely than any outcome. While the coming altcoin news featured coins like Stellar (XLM) and Ripple (XRP) rising by more than 15%, Bitcoin retraced and was not successfully triggered by this rise.

Once the 12 Exponential Moving Average (EMA) dropped below the 26 levels on September 16, aggressive intraday traders correctly predicted a double bottom bounce at $10,075. However, the Bitcoin bulls are in danger because BTC was hit even below that – and a bearish breakdown was what initiated a further decline.

Right now, a lot of traders are panicking given that Bitcoin is fast approaching its termination point of the descending wedge. The truth is, everyone is expecting volatility and fingers are crossed hoping that Bitcoin will make an explosive upside move. As many best cryptocurrency news sites noted, this is certainly not off the table.

However, the position which Bitcoin is in right now is vulnerable. The Bitcoin bulls are in danger ever since the most recent drop brought BTC right to the 111 Day Moving Average (DMA) – which was also a point that has reliably functioned as a bounce point since April 2. The 111 DMA lines up with the $9,600 support and a drop below this would mean that Bitcoin is closer to exiting the base of the descending wedge at $9,385.

Now that Bitcoin bulls are in danger, it is certain that the drop may continue. A drop below $9,300, for instance, would draw concern as there is minimal purchasing demand until below $8,600.

According to the creator of the Bitcoin Golden Ratio named Philip Swift, traders should keep a hawk’s eye on Bitcoin and its historical volatility.

“It’s now very possible that BTC just goes sideways for a while now. If that scenario plays out, then it is worth keeping an eye on Historical volatility — currently dropping quickly. It would present a lovely long position trade opportunity when it drops down to the green box,” Swift tweeted.