Bitcoin Price Analysis: BTC/USD tumbles days to halving, is a reversal to $10,000 in the picture?

Bitcoin price has pulled a shocking and devastating move against bullish investors following a dire free-fall from highs around $9,800 on Saturday to lows at $8,105 on Sunday. The largest cryptocurrency broke out past $10,100 earlier this week, confirming to investors that a halving-triggered rally is in the offing.

At the time of writing, BTC/USD is trading 9.42% lower on the day and valued at $8,641. It appears that the surge to levels above $10,000 was a perfect ingredient for a squeeze as the volume remained technically unsupported.

Bitcoin 2020 halving around the corner

The most-anticipated halving event takes place in two days. The impressive rally to high above $10,100 mid this week revealed the increased speculation in regard to the event. Predictions surrounding the impact of the halving process go to highs of $1 million in three to five years. PlanB, a crypto analyst, using the Stock-to-Flow model predicts Bitcoin rally above $80,000 by the end of 2021. Former hedge fund manager Mike Novogratz said this week that Bitcoin rally has just started and it has not even recorded yearly highs.

Bitcoin price technical analysis

The volatility in the cryptocurrency market is extremely high at the moment. However, from a technical perspective, Bitcoin’s downside is supported by the confluence formed by the 61.8% Fibonacci level and the 200-day SMA.

Buying interest managed to send Bitcoin above $8,600 following the drop. In other words, investors could be willing to buy low as they speculate more gains post-halving. Also, reclaiming the position above $9,000 will serve as confirmation for gains above $10,000. Apart from the support mentioned, other levels that are of interest to Bitcoin include $8,000, the 50-day SMA ($7,468), the 38.2% Fibo ($6,417) as well as $6,000.

BTC/USD price daily chart