Bitcoin dropped by a total of 8% over the past couple of days trading as it dropped back beneath the pivotal $10,000 support level. The cryptocurrency is attempting to bounce back, however, this could be the start of a further retracement lower.
Bitcoin ran into resistance at $10,360 during mid-February and has been retracing ever since. There was a slight rebound a few days ago when it bounced back above $10,000, however, the recent market sell-off has pushed it back beneath the level.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Taking a look at the daily chart above, we can see that, since our last analysis, Bitcoin rolled over from the $10,360 resistance level as it started its descent lower. It initially dropped beneath $10,000 but managed to find support at $9,637 (short term .382 Fib Retracement) which allowed it to bounce back higher.
On the rebound, Bitcoin then went on to run into resistance at $10,180 and was unable to overcome this resistance – causing it to roll over and fall again.
We can see that Bitcoin dropped as low as $9,280 before bouncing higher again. It found support at a rising trend line which will be a very important level moving forward.
Short term prediction: BULLISH
If the sellers continue to drop BTC back beneath the support at $9,656, the first level of lower support is located at $9,366 (short term .5 Fib Retracement). The support here is further bolstered by the rising trend line.
Beneath this, support lies at $9,200, $9,159, $9,095, and $9,000.
On the other hand, if the bulls bounce higher, resistance lies at $9,637, $9,185, $10,000, and $10,180.
The RSI dipped beneath the 50 level which shows that the sellers are now in charge of the market momentum. For a market recovery, we will need to see the RSI breaking back above the 50 level.
Key Levels
Support: $9,565, $9,366, $9,280, $9,200, $9,159, $9,095, $9,000.
Resistance: $9,637, $9,615, $10,000, $10,180, $10,360, $10,423.
