Bitcoin Price Dives Under $9,700: Time to Buy The ‘Dip’ Or Keep Off?

  • Bitcoin price is extremely bearish after ramping through key support areas.
  • Opportunities to buy low present themselves a Bitcoin market that has been bullish for over two months.

Bitcoin is in the middle of a retracement move from last week’s high above $10,500. The downward momentum has become quite unstoppable. Besides, the key support at $9,700 has been ravaged forcing the bulls to concentrate on defending the next support target at $9,600.

Bullish Flag Pattern

The formation of a bullish flag pattern suggests the more upside action could continue only if the pattern’s support is not broken. However, a breakdown under the flags support could result in dire effects of Bitcoin price spiraling towards $9,000.

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

All technical indicators support the bearish motion, further drumming home the idea that this could be the end of Bitcoin’s bull rally. The RSI, for example, is almost digging under the average (50). The sharp downward slope is a clear indication of the influence and the force sellers are exerting on the tentative support areas.

On the brighter side, BTC/USD is still trading above the 200-day SMA. Moreover, the 50-day SMA is above the 200-day SMA to show that buying power is not entirely non-existent. However, the bulls require a boost to come out of the bears’ trap. A reversal is possible but only if the support at $9,700 is reclaimed. Besides the next support at $9,600, Bitcoin will seek balance at lower areas such as the 9,200, $8,800, the 50% Fibonacci retracement level and $7,200.

Bitcoin Key Levels

Spot rate: $9,609

Relative change: -310

Percentage change: -3.13%

Trend: Strongly bearish

Volatility: High

 

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Post your comment...
John Isige 441 Articles

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Follow John @