Bitcoin Falls Below $10,000 At The Key Psychological Level For Investors

Bitcoin falls below the $10,000 price range which is considered as a key psychological level for investors. In less than three weeks the bitcoin price dropped from the previous $13,000 and in the altcoin news analysis below we take a closer look.

While the dominant crypto asset started a strong recovery on July 17 from around $9,200 to $10,600, it didn’t manage to climb above the $11,000 and it failed to test the resistance level over the past next days. As it was noted by technical analyst Josh Rager, apart from the short squeezes on margin trading platform such as Bitfinex and BitMEX, the price action of bitcoin in the past two weeks was mainly driven by technical factors. Rager noted that if bitcoin fails to stay strong at the $10,189 support level, there could be a 4-digit drop in the near future:

 “Breaking down to support zone. On 1HR chart showing top of support zone now acting as resistance. Not a great sign for bulls and want to see price break back up in neutral territory Continue to watch this area for a break $10,189 will lead back down to 4-digit BTC.’’

Earlier this week, before bitcoin pulled back from the $10,300, another crypto asset trader noted that the gap in CME’s bitcoin futures contract could be settled at $8,500 indicating that if the bitcoin falls below, there could be a possibility that it will go down even lower than expected. Since the middle of July, Bitcoin showed some incredible movements, one of which led to a 9% rally in a matter of minutes which also led to a liquidation of the most short contracts on the trading platforms.

DonAlt, the popular crypto trader and tech analyst noted that the next support for bitcoin can be found at $9,800 saying that a 4-digit drop is likely at the current cincture of the market:

 “If I had to pick two places to close shorts///long it would be the two green areas below. S1: $9800; S2: $8200. Anything else is in no shape or form significant enough to me to buy in a (short-term) bear trend.’’

As noted in the latest cryptocurrency news, the technical indicators show a week hand for bulls but the fundamental factors are boosting the sentiment around the market.