Bitcoin (BTC) bears still run the show, no need to panic yet
- BTC/USD regained some ground after a strong sell-off during early Asian hours.
- The losses still may be extended, experts warn.
Bitcoin has been losing ground recently. The first digital coin has lost over 13% of its value since the weekend and dived under $10,000 for a fraction of time during early Asian hours on Monday.
While U.S. President Donald Trump’s criticism of digital assets might have served as an initial trigger for the sell-off, the further momentum gained traction due to technical and speculative factors.
“Bitcoin continues to trade lower as comments from President Trump put downward pressure on the cryptocurrency. It could fall further to $8,000, giving back all the gains made in June,” Alfonso Esparza, senior market analyst at Oanda Corp. in Toronto commented.
Many experts view $10,000 as a critical barrier for Bitcoin, though the longer-term upside trend will stay intact even if the price dips lower. On a weekly chart, we still have room for correction as long as $7,300-$7,200 stays intact. This support area is created by a confluence of SMA100 (Simple Moving Average) and the middle line of the Bollinger Band on a weekly chart.
Moreover, considering that the weekly Relative Strength Index (RSI) stays in the overbought territory, the sell-off can still be qualified as a natural correction.
BTC/USD, 1-week chart
Author
Tanya Abrosimova
Independent Analyst
