Bitcoin is 14% down since Monday after it failed to breach the upper side of a symmetrical triangle that has been forming since June 26.
The fall in price has resulted in a third lower high in just under two months, with Bitcoin failing to achieve a price above the previous highs of $14,000 and $13,250.
However, despite falling below $10,000, Bitcoin found support on the daily 100 exponential moving average (EMA), bouncing by 4% just hours after the move to the downside.
For now, the lower side of the symmetrical triangle has held, which could indicate a retest of $10,450 in the coming days.
On the four-hour chart, the shorter-term EMAs are ticking to the downside, with a dreaded death cross potentially on the cards if price remains below $10,000.
The daily relative strength index (RSI) is at its lowest point since February at 40.23, although there is still room for it to go lower as Bitcoin saw a tick to 25.70 in December and a low of 9.32 in November last year.
If the symmetrical triangle breaks to the downside, traders will be expecting a drop to the $8,700 level of support before a test of the 200 EMA on the daily chart, which is just above $8,000.
The severity of this morning’s decline in price is a worrying sign for Bitcoin bulls, who were optimistic and almost euphoric when price nudged above $12,000 last week.
The fall in the price of Bitcoin has also coincided with a bloodbath for altcoins, with the likes of Bitcoin Cash, Litecoin, and XRP all experiencing more than 10% declines as $18 billion has been wiped off the entire cryptocurrency market cap.
For more news, guides, and cryptocurrency analysis, click here.
Those who enter the market at this time may be surprised to hear that Bitcoin…
George Town, Grand Cayman, 22nd November 2024, Chainwire
Las Vegas, US, 1st November 2024, Chainwire
From digital art to real-estate assets, NFTs have become a significant attraction for investors who…
Singapore, Singapore, 21st October 2024, Chainwire
HO CHI MINH, Vietnam, 17th October 2024, Chainwire