It seems that Bitcoin (BTC) is entering another downtrend as it suddenly fell from $ 9,800 to $ 9,500.
The Dow Jones Industrial Average Index rose more than 720 points from yesterday’s low. It seems to be in an inverse relationship with Bitcoin Dow. BTC / USD fell as fast as Dow’s rise.
Earlier yesterday, Bitcoin was above the $ 9,800 level. Apparently, BTC / USD was on track to touch the coveted $ 10,000 mark. However, BTC not only lost its momentum, but also fell under significant support.
Bears May Take Control If Bitcoin (BTC) Lose Support
- Investors rushing to invest in Bitcoin after BTC / USD exceeds $ 10,000 may suffer one of the worst blows.
- BTC / USD acted as a reliable support zone above the 20-day Exponential Moving Average. At the time of writing, BTC is trading at $ 9,533.36. Falling Bollinger Bands show that Bitcoin price will remain in this range in the short term.
Bitcoin (BTC) Price Analysis
- Looking at the daily timeframe for BTC / USD, we can see that the preferred entry price point for Bitcoin traders is $ 8,732.36. About 8.47% lower than the current level.
- Even if BTC / USD starts to rise, it will face serious resistance at $ 9,652.58.
- Also, if you take a closer look at the volume compared to price changes, large red increases in the volume range can be seen. This indicates a big sale. Along with the big red spikes, there was a significant amount of support steam in BTC / USD.
Patience Waits for Bitcoin (BTC) Traders
Technical analysis shows that Bitcoin can be directed to a steeper decline. And when this happens, Bitcoin investors will take advantage of this opportunity.
BTC / USD is very valuable right now. However, if the bears pull prices to $ 8,700 or less, Bitcoin can offer an attractive investment opportunity. Until then, this is a ‘wait and watch’ period!