Bitcoin’s Move Below $10,000 Could Initiate Medium-Term Downtrend

Bitcoin’s move below the $10,000 could start a medium-term downtrend as the price declined by 15% in the past few days and tested the $10,000 against the US dollar. In our bitcoin news today, we are reading more about the price analysis.

Bitcoin is trading below the main $10,800 price level and $10,500 support levels as the price even spiked below $10,000 and settled below the 100 simple moving average. There’s also a steep bearish trend line forming close to the resistance of $10,250 on the 4-hour charts of the pair. The pair could start a recovery wave above $10,250 or it could even plunge lower than $10,000.

Over the past week, there was a sharp decline in BTC from $12,000 to resistance against the US dollar. BTC broke the $11,200 support level and went into the bearish zone. The decline gained pace below the $10,800 support zone and the bears took over. Bitcoin’s move below $10,000 saw the bulls getting ready to push the price below the $10,500 support with a close below the 100 simple moving average. The price even spiked below $10,000 and the new monthly low was formed near the $9,850.

Bitcoin is currently correcting higher and is now trading above $10,000 with a break above the 23.6% fib retracement level from the downward move from $10,640 high to $9,853 low. The first key resistance is close to the $10,250 level with a steep bearish trend line forming close to the resistance near the $10,250 level on the 4-hour charts of the pair. the trend line is coinciding with the 50% fib retracement level from the downward move from the $10,640 high to the $9,853 low.

The successful break above the trend line could start a decent recovery above the $10,300 level while the next major resistance is close to the $10,500 and the $10,600 level. Above these levels, the price could turn positive. If bitcoin struggles to climb above the $10,250 resistance, there are more chances of losses with the initial support of the downside close to the $10,050 level. The main support is close to the $10,000 level with a daily close below the $10,000 support that could establish a medium-term downtrend. The next major support is close to the $9,500 and the $9,400 levels.

The 4-hours MACD for the BTC/USD is moving slowly into the bullish zone. The 4-hour RSI for the pair is below the 40 levels while the major support level is set at $10,000.