Bitcoin Price Analysis: BTC/USD Nosedives Under $10k, Setback Or Rally Cut Short?

• Bitcoin bears swing in action as the price loses the pace towards $10,000.
• Bitcoin price holds within the rising channel despite the correction from yearly highs.

Bitcoins paced towards the psychological $11,000 after correcting from the recent dip to $9,700. The bulls marched above several barriers including $10,000, $10,200 and $10,400. However, the momentum targeting $11,000 fell short of the medium-term resistance at $10,500. In other words, a new yearly high was formed at $10,482 (on Coinbase).

While the move was impressive and towered above the crypto horizon, Bitcoin’s dominance in the market has continued to falter amid the bull run. Data on CoinMarketCap shows the dominance of Bitcoin struggling to hold above 61%. This means that altcoins are perfuming much better than Bitcoin especially selected once such as Ripple, Ethereum, LINK, and Bitcoin Cash.

Bitcoin Price Technical Analysis

On hitting the barrier short of $10,500, intense pressure ravaged through a number of tentative support areas such as $10,400, $10,200 and $10,100. Bitcoin price is struggling to climb above the broken support at $10,200. However, it seems that recovery will not be an easy nut to crack.

According to the prevailing technical signals, the downward momentum could continue into the American session. The RSI is diving towards the oversold level, further cementing the bears’ position on the market. The momentum indicator also signals that the path of least resistance remains to the south in the coming sessions.

BTC/USD 1-hour chart

As far as support is concerned, Bitcoin is still trading within the confines of a rising channel. The channel support should come in handy in conjunction with the 61.8% Fib level. Other key levels at $9,800 and $9,600 will also halt losses in the event BTC spirals under $10,000.

Bitcoin Key Levels

Spot rate: $10,132

Relative change: -203

Percentage change: -1.9%

Trend: Bearish

Support: $10,000, $9,800 and $9,600

Resistance: $10,200, $10,400 and $10,500