Bitcoin Just Signaled “Sell” While Falling To $9,600 Levels

The top cryptocurrency failed to climb convincingly above the $10,200 region overnight and as a result, declined heavily below $9,800 this morning. Now, Bitcoin just signaled a “sell” order as it is vulnerable for a bigger correction.

After failing to clear the $10,200 and $10,300 resistance levels against the US Dollar, we could see a sharp decline below the $10,000 and $9,800 support levels in the latest crypto news. The bearish trend line acted as a strong hurdle near $10,200 on the hourly chart of the BTC/USD pair and now, we can see that BTC is consolidating its losses and might face sellers near $9,800 if it corrects higher.

The reality is that Bitcoin just signaled that many traders should sell it. This happened after the bulls failed to gain traction above $10,200. A swing high was formed near the $10,300 levels and the price declined heavily below the $10,000 support area.

Moreover, the major bearish trend line from yesterday acted as a strong hurdle near $10,200 on the hourly chart of the BTC/USD pair. Speaking of which, the pair fell by more than 5% and traded below the $9,800 and $9,700 levels.

Similarly, there was a strong decline in Ethereum below $270 and Ripple which dived below $0.2850. The XRP news today show that Ripple’s token is at $0.2737 at press time while Ethereum (ETH) is testing the $260 price point.

On the question if we should expect more losses from the leading cryptocurrency, the reality is that if BTC fails to continue above $9,800 and $9,820, there is a risk of more downsides. A daily close below $9,500 might push BTC in a bearish zone in which the bears would aim at a test of the $9,000 support area.

The technical indicators show that Bitcoin signaled a “sell” order while being at $9,627 and is now in a vulnerable position.

• Hourly MACD – The MACD is now gaining strength in the bearish zone.
• Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.
• Major Support Levels – $9,500 followed by $9,200.
• Major Resistance Levels – $9,750, $9,800 and $10,000.

The resistance, as we can see, lies from $9,750 and above which is the only chance for bulls to start another rally today. If this does not happen, the cryptocurrencies may witness a new decline and the market may slump again, falling even below $270 billion.