Bitcoin Plummets to $10,400 as Risk of Further Losses Increases
After making a sharp movement up towards $11,000 overnight, Bitcoin was unable to extend its upwards momentum and has now plunged back to the lower-$10,000 region, which is where it found support earlier this week after facing a rejection at its previous resistance level of $10,700.
Today’s drop signals that bulls currently face significant weakness, and analysts are noting that it may have opened the gates for further losses in the near-future.
Bitcoin Faces Swift Rejection at $10,800 as Bears Roar
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $10,400, which marks a significant drop from its daily highs of nearly $10,800 that were set after Bitcoin incurred a massive bout of buying pressure that propelled it from lows of $9,400.
This upwards momentum that first began last week came to a grinding halt after Bitcoin neared the upper-$10,000 region, which appears to be an insurmountable resistance level for the crypto in the near-term.
While looking towards Bitcoin’s short-term price action, it appears that $10,400 is an important support level, as Mayne, a popular crypto analyst on Twitter, explained that a sustained drop below this price could lead BTC to revisit the upper-$9,000 region.
“$BTC Update. $10.2k test.Watching $10.4k now, we lose that level I will look for more downside towards $9.8k,” he said.
The notion that Bitcoin could soon drop out of the five figure price region is not unwarranted, as it could drop as low as roughly $9,300 and still be trading within the macro-triangle formation that many analysts believe will ultimately result in a massive upwards break.
Josh Rager, another popular crypto analyst, explained that Bitcoin’s previous support level at $10,400 appears to have become a level of relative resistance for the crypto, which may signal that bears currently have an edge over bulls.
“$BTC Looks like price has flipped support to resistance on the 4 hours. Will continue to watch how this plays out – but I’m not worried and will certainly be a buyer if Bitcoin trends back down towards $9k,” he said in a recent tweet.
As Bitcoin’s daily close fast approaches, whether or not it is able to close above or below $10,400 may ultimately illuminate to the markets whether or not today’s drop marks an end to the crypto’s recent uptrend.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.