Breaking: Bitcoin (BTC) slumps below $10,000 amid growing bearish sentiments
|- Bitcoin (BTC) moves below $10,000, recovers back above the critical handle.
- The upside momentum remains weak so far.
Bitcoin bears attempted to take the price below $10,000 handle, but the breakthrough proved to be false so far. The price touched $9,966 low and hit a brick wall of new but orders that pushed it back above the critical handle.
However, the recovery stopped on at $10,174, on approach to SMA50 (Simple Moving Average) on a daily chart ($10,180). A sustainable move above this handle is needed to mitigate the immediate downside pressure and allow for an extended recovery. At the time of writing, BTC/USD is changing hands marginally above $10,000.
On the 1-hour chart, a sustainable move below the lower line of 4-hour Bollinger Band at $10,075 may signal that the bearish sentiments dominate the market. It means that we may see another assault at $10,000 sooner rather than later. Meanwhile, once this barrier is cleared, the downside is likely to gain traction with the next focus on $9,330 (the lower line of 1-day Bollinger Band.
The Relative Strength Index points to the downside, which supports our bear case scenario.
BTC/USD, 4-hour chart
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