Bitcoin Bulls Fail to Hold Price Level, Price Eyes Further Downside

Krystian Bielanski
Krystian is a crypto trader and investor with a background in IT based in Hong Kong. He specialises in technical and fundamental analysis working closely with chartist and algo programmers.
  • Bitcoin was trading at $10987, before the plunge
  • It appears that BTC is primed to witness more near-term downtrend, probably sinking to $10,000 mark until it gains any significant buying pressure.
  • Bitcoin is likely to test support of the wedge and then fall to lower support or even slightly below to fill the CME gap $9700

Lately, Bitcoin has been showing signs of an uptrend in the market; bulls even pushed the value of bitcoin near $12000 Market. However, failed to sustain above $11000 mark for long. Bitcoin was trading at $10987, before the plunge. Suddenly bitcoin price started falling as bulls lost control over the market. Investor confidence has been shaking. The bearish sentiment in the market was so high that the bitcoin price further suppressed, and hit the $10,300, and the price continued to decline. The leading cryptocurrency dropped nearly $700 in just a few hours. Bitcoin (BTC) breadth remained in favour of bears. The short-term, medium-term and long-term moving averages are all diverging downwards. 

It’s been a tough past few days for Bitcoin and cryptocurrency market, with bears gaining the control in the market as bitcoin failed to hold it’s position above $11,000. Bitcoin is taking continuous blows, and recovery seems pretty harsh as recent sell-off had badly shaken Bitcoin’s momentum. Looking at the currency market, it appears that BTC is primed to witness more near-term downtrend, probably sinking to $10,000 mark until it gains any significant buying pressure.

Bitcoin Price Analysis

Source: TradeView

The attached 4-hour chart showed that Bitcoin (BTC) just broke down from a rising wedge, first support level is being defended, and if we stay above $10500, then we can still be bullish if this support won’t hold the next one is around $10000-9800.

Source: TradeView

Bitcoin is likely to test support of the wedge and then fall to lower support or even slightly below to fill the CME gap $9700.

Source: TradeView
Source: TradeView

The MACD on the daily and weekly timeframe is confirming bearish trend momentum for bitcoin. Following bitcoin’s downtrend altcoins will likely bleed in the next coming weeks.

Source: TradeView

Falling wedge and the worst-case scenario which is possible for bitcoin since it already broke down, there is potential movement down, and it shows 27.68% from the wedge, and we could quickly drop way below CME gap and test support which is the big green box. However, it can’t be precisely predicted as to where BTC will be heading, but a possible area is $9250 that’s where with the help of volume profile, an area of interest is spotted. The smallest size of the green box is $8550.

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