Bitcoin Breaches Critical Support Level, Vulnerable to Further Break Down

Yesterday, BTC made another surprise drop to $8,700 and the support appears to be holding in the meantime. The gradual downward move has been systematic.

Before this time, BTC was hovering above $9,700 to retest the 10,000 resistance. Bitcoin bulls failed to retest the resistance level. Consequently, the king coin dropped to $9,200. Buyers reacted as they made an upward correction which was stalled at $9,300.  

The resistance at $9,300 frustrated further upward move as price consolidates above $9,200 for two days. Yesterday, the market dropped again to $8,700.   The market is no more trading in the upside range between $9,300 and $10,000. Therefore, buyers have a slim chance of retesting the $10,000 overhead resistance. Bitcoin risks further depreciation to $8,250 low if the $8,700 support cracks.

Bitcoin indicator reading 

As a result of the recent fall, the bears have broken below the EMAs. The price is below the EMAs which indicates a further downward move. BTC is below the 50 % range of the daily stochastic which indicates that the coin has bearish momentum.

Key Resistance Zones: $10,000, $11,000, $12,000

Key Support Zones: $7, 000, $6, 000, $5,000 

What is the next direction for BTC/USD?

Certainly, if the selling pressure persists the hope of resting the overhead resistance will be a foregone conclusion. Analysts believe that a retest of $8,250 and $8,500 support is imminent if the $8,800 supports cracks. Nonetheless, any further depreciation below $8,250 support will indicate that Bitcoin is weak.

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.