CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$22,973.00
  • ethereum
    ETH$1,581.92
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » BTC » Bitcoin Breaking Down Below $10,000 – Here Are Some Options For a Possible Bottom (BTC Price Analysis)

    Bitcoin Breaking Down Below $10,000 – Here Are Some Options For a Possible Bottom (BTC Price Analysis)

    Author: Yuval Gov

    Last Updated Jan 7, 2020 @ 11:41

    Every time Bitcoin is trading under tight range, together with a decreasing amount of volume, there will be a huge price move coming up shortly after.

    During the previous month, we have mentioned the 4-hour triangle formation developing and that we were expecting the breakout (either direction) to take place very soon since the apex of the triangle is nearby. Despite that triangles usually ‘pop’ to either side shortly before reaching the actual apex and tend not to wait till the exact apex.

    During the recent hours, Bitcoin saw a large ugly red candle of roughly $700, breaking down to mark the current levels as the daily low.

    Looking on the altcoins, we see pretty much the same picture: they are reaching for even lower prices against Bitcoin while Bitcoin drops or surges. It seems like the only settings allowing the altcoins to gain are when Bitcoin’s price is stable.

    Lowest RSI Since February 2019

    The momentum indicator, the RSI, is showing weakness and is pretty much bearish. After failing to succeed in creating a higher low on the daily chart, the RSI plunged severely to the 38 level.

    This is its lowest value since February 7, 2019 (almost seven months). The positive insight is that the Stochastic RSI is deep down in the oversold area, so a temp correction might be coming soon, along with reaching to a possible support area ($9400 – $9500). However, until proved otherwise, the bears are back.

    Total Market Cap: $248 billion

    Bitcoin Market Cap: $171 billion

    BTC Dominance Index: 69.1%

    *Data by CoinGecko

    Key Levels to Watch

    – Support/Resistance:
    After the triangle got broken down, and as expected, Bitcoin produced a massive move to the downside – quickly breaking down the support area at $9800 – $10,000, reaching the next support at $9400 – $9500. In the likely case of a breakdown, the next significant support level is the $9200, where lies the ascending trendline (marked red on the daily chart), which contains the lows since reaching 2019 high and coming down. Further below lies $9000, $8800, and $8500 (levels for the short term).

    From the bullish side, if indeed a correction coming up it will likely send Bitcoin to the support turned resistance levels at $9800 and $10,000 (along with the triangle’s boundary that broke down and the significant 100-days moving average line – marked white). Further above are $10,300 and the 50-days moving average line (around $10,500), which Bitcoin had failed to break-up early this week.

    – Daily chart’s RSI: discussed above.

    – Trading Volume: Yesterday’s huge drop was the highest volume day during the past week. However, it’s not even close to the average daily volume during June. It will be interesting to see if the bears are selling in high volumes and if they are controlling the market from this aspect as well.

    BTC/USD BitStamp 4-Hour Chart

    btc_aug29_4h-min

    BTC/USD BitStamp 1-Day Chart

    btc_aug29_d-min

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.


    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

    Cryptocurrency charts by TradingView.
    Tags: Bitcoin (BTC) Price
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Yuval Gov
    More posts by this author

    Yuval Gov has over 15 years of trading experience in the stock exchange, graduated from TAU - Economics and Management. Fell in love with the crypto space. Does Crossfit to get away from FOMO. Contact Yuval: LinkedIn

  • bitcoin
    BTC$22,973.00
  • ethereum
    ETH$1,581.92
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    13 Biggest Crypto Scandals and Controversial Stories of 2022

    13 Biggest Crypto Scandals and Controversial Stories of 2022

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!