- Bitcoin bearish wave is catching up with the leading altcoins.
- Bitcoin eyes $10,000 to trigger fresh demand for a leg up above $11,000.
The prevailing trend is strongly bearish for Bitcoin price. Besides, the bearish wave is also catching up with the leading altcoins like Ethereum and Bitcoin Cash. Bitcoin correction from its early week consolidation above $11,200. The slide comes after an impressive recovery staged last week lost steam around $12,338. The retracement took a pit stop at $11,500 but the break below the trendline opened the Pandora box.
BTC/USD 4-hour chart
In addition to that, trading below the 50 Simple Moving Average (SMA) 1-hour chart persuaded the bears to increase their positions. A further drop under the 61.8% Fibonacci retracement level taken between the last drop from $12,338.03 to a swing low around $9,899.31 rejuvenated the bear momentum pressing down on key support areas at $11,000, $10,750 as well as $10,500.
Bitcoin is currently flirting with the 23.6% Fib level while deeply buried in an avalanche of bear pressure. An intraday low formed at $10,360 (on Coinbase) is not strong enough to stop force yearning for $10,000. Besides, the Moving Average Convergence Divergence (MACD) is sliding deeper in the negative territory. The widening negative divergence suggests that the bear’s grip will remain unchanged in the coming sessions,
On the flip side, the 50 SMA 4-hour is above the 100 SMA which hints a higher consolidation. Moreover, investors are likely waiting for Bitcoin to slide closer to $10,000. Buying the ‘dip’ is an investment strategy that allows investors to buy when the price is finding balance after a downtrend. If this happens, fresh demand is likely to push Bitcoin back above $11,000 in readiness for the next leg up towards $13,000.
Bitcoin Key Technical Levels:
Trend: Strongly bearish.
MACD: Acute negative divergence suggests a leg down towards $10,000.
Support Areas: $10,400, $10,200, $10,000 and $9,800.
Resistance: $10,500, $10,750 and $11,250.