Bitcoin Plunges To Under $10,000: Is The Rally Over? BTC Price Analysis & Overview

Our last analysis from two days ago had the title of ‘The calm before the storm.’ Bitcoin was trading around the $12K mark. As of writing this, everyone knows about the storm going on in the Bitcoin price, as the coin is trading again under $10,000.

We mentioned the triangle pattern along with the strong ascending trend-line support (as can be seen on the 4-hour chart). Since Bitcoin broke it down at $11,500, the king of the cryptocurrencies initiated an almost $2,000 cut to its value.

Things happen quick. As been said here before; violent bullish moves carry violent moves to the bearish side. From $7,500 to $13,880 (the current 2019 high), Bitcoin didn’t see any significant correction. So, this bloody move is the result.

Total Market Cap: $291.6 billion (Back to under 300)

Bitcoin Market Cap: $175.4 billion

BTC Dominance Index: 60.1% (Support here?)

*Data by CoinGecko

Now What?

– Support/Resistance:
Bitcoin broke down almost all mentioned support levels mentioned on our previous price analysis. Bitcoin is now facing the next support level, around $9800. Breaking below and the next level is a significant one: The double top from mid-June at $9400. As mentioned here before and only to my opinion, $9400 will still be considered as a healthy correction to the recent parabolic move (up to almost $14K).

Further below is the $8800 – $9000 zone that contains the critical 50-days moving average line (marked in purple on the daily chart). More support is then located at $8500, $8200, $7800, $7500.

From the bullish side, the next resistance level is $10,000. Above lies $10,300 and $10,600 (the recent high shown on the 4-hour chart). Further above is the $11K, $11,200, and $11,500.

– Daily chart’s RSI: How things change quickly. The RSI reached its highest levels at nearly 90 just a week ago. As of now, the important momentum indicator is about to enter the bearish territory below 50. However, the Stochastic RSI Oscillator is in the oversold area, and there is a possible correction coming up here, in case of a bullish cross over.

– Trading Volume: Yesterday’s volume was quite high. This is the volume of the sellers, which is unfortunate for the Bitcoin price.

– BitFinex open short positions: We had seen this once in May, now again. At the day following the odd drop in short positions, Bitcoin dropped severely. This is exactly what we wrote here yesterday.
The current number of short positions now lies at 10.8K BTC, which is near the yearly low.