Bitcoin Plunges $800 In Hours: Can The Price Maintain Above $10,000? BTC Analysis & Overview

The short-term action continues going back and forth inside the marked horizontal triangle on the following 4-hour chart.

After two days of consolidation below the triangle’s descending trend-line with zero success to break through, Bitcoin plunges $800 to set $10,082 as its current daily low. As mentioned here on our previous analysis, the $10,800 area is a tough resistance, containing the 50-days moving average line (marked purple) and the 4-hour descending trend-line (marked yellow).

Looking at the bigger picture, the daily chart, we can see that Bitcoin had yet to produce a higher low and had been moving in a lower-high formation, which is bearish. The question is, can Bitcoin maintain the lower boundary of the triangle, which is roughly around $9950 – $10,000? That support had held the Bitcoin price for over a month.

Total Market Cap: $264 billion

Bitcoin Market Cap: $182 billion

BTC Dominance Index: 68.9%

*Data by CoinGecko

Key Levels to Watch

– Support/Resistance:
Following the recent hours’ plunge, Bitcoin is now facing the strong mentioned support level between $9800 and $10,000, along with the ascending trend-line on the 4-hour chart and the 100-days moving average line (marked white).

In case of a break-down, the next support levels to be tested are $9600 and $9300 – $9400. The last is a crucial area which contains the red ascending trend-line on the daily chart. Below is the $8800 and $8500.

From above, Bitcoin is not facing the $10,300 support turned resistance area. Further above is the $10,600 (4-hour MA-200), before getting to the $10,800 for a second chance.

– Daily chart’s RSI: The RSI indicator looks bearish after failing to maintain the 50 level and now facing the 43-44 levels in a last effort to stay above its previous low. If the RSI does succeed, it might be a first bullish sign that the price could indeed remain above the $10,000 region and that the bulls are still here.

– Trading Volume: So far, we are witnessing one of the lowest volume weeks since April. Maybe typical to July and August, but this amount of volume could be enough to move the whole Bitcoin market.