Bitcoin May Drop to Psychological Support and Faces Selling Pressure at $10,600

Bitcoin (BTC)  plunged to $10, 321 low after failing to break the $11,000 resistance. Now the king coin fluctuates between $10,300 and $10,600 in a tight range.

Bitcoin Price Long-Term Prediction: Bearish

The recent fall does not have a corresponding rebound. Buyers did not buy the dips to push BTC price upward. What we saw is the consolidation of prices above the $10,300 support. For the past 48 hours, BTC is fluctuating above the current support. BTC recovery will be delayed as the coin failed to rebound at the recent lows. 

Bitcoin is in the bearish trend zone and as a result, the selling pressure may persist. Sellers may want to sink Bitcoin below the current support at $10,300. Subsequent falls to 10,000 and $9,800 may attract BTC rebounding from the recent lows. A strong bounce from the recent support can propel BTC to resume the uptrend. That is a rally above $10,500 and the bullish momentum extending to $10,800 high. Nonetheless, for the upside momentum to resume, the $11,000 resistance has to be reclaimed as a support level.

Bitcoin Indicator Reading

BTC price is fluctuating below the resistance line of the descending channel. The coin will resume an upward move if price breaks and closes above the resistance line. The crypto is at level 41 of the Relative Strength Index period 14. That is, it is in the downtrend zone and below the centerline 50.

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?

The current move depends upon the holding of the psychological support at $10,000. The breaking of this level will mean that the Fibonacci tool analysis will hold. On September 3 downtrend; the retraced candle body tested the 78.6% Fibonacci retracement level. It indicates that the downtrend will extend to 1.272 Fibonacci extension level or $9,300 low. At this level, the market will now reverse.

Disclaimer. This analysis and forecast are the personal opinions of the author and 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.