Bitcoin price has come under significant pressure this week as it failed to hold the $10,000 level, which it had reached rather easily since starting this year around $6,900.
While the price broke $10,000 on February 9, 2020, following a golden cross between the 50-day and 150-day moving averages, and even managed to defend the breakout for a couple of days, it could not hold its own against significant profit-taking, which turned the tide against the bulls.
The $9,500 support is holding for now, and earlier, had served as the launchpad to breach $10,000. While downward pressure is increasing as market sentiment is turning bearish, the RSI is also cooling down, and technicals indicate that a fall to $9,000 should be the worst-case scenario in the short to mid-term.
On the upside, $10,000 is still a realistic target, but investors may hold off for now given the negative comments coming out of the United States. Last week, Steven Mnuchin, the United States Secretary of the Treasury claimed ‘significant’ new crypto regulations are on the way, while the Department of Justice is calling Bitcoin mixing a crime.
Meanwhile, the upcoming Bitcoin halving is still widely anticipated as a positive driver for the price, but it is possible that the development may be priced-in at $10,000 per Bitcoin.
Even though 2017 saw Bitcoin hit $20,000 without stopping, the crypto market has matured since, and there is money to be made on both, longs and shorts, which has resulted in major price swings.
For now, $10,000 is a major price level for Bitcoin, and failure to breach it in the coming days may exposure further weakness in the price.
