- Bitcoin drops to $9,600 amid extremely high volatility levels.
- As indicators such as the RSI slide further into oversold conditions a reversal is expected to hit the ground rolling.
- Bitcoin price must reclaim $10,000 resistance to avoid further correction towards $9,000.
Bitcoin has lost its cool towards the end of the Asian session on Thursday. After managing to defend $10,000 over the last few days, the granddaddy of cryptos has plunged below several other support areas including $9,900 and $9,800. The declines are testing the next support target at $9,600, although Bitcoin is trading at $9,776 at the time of press.
The altcoins are also dumping in tandem with Bitcoin despite the fact that Bitcoin ignored their rally in the last few days. Ethereum is almost breaking $200 support while Ripple is already below $0.30.
Bitcoin price technical picture
Bitcoin is currently struggling to find balance above $9,700 which is below the Bollinger Band one-hour lower curve. The volatility at the moment is extremely high and the fact the relative strength index (RSI) is deep inside the oversold region which means that a reversal in probable.
The moving average convergence divergence (MACD) is at the level it was on September 9 where Bitcoin gained stepping above $10,400 resistance. However, the acute bearish divergence suggests that the sellers will hold onto their influence on the price a while longer.
Reversal from the current levels will encounter resistance at 50 simple moving average on the one-hour chart currently at $10,188 and above the trendline resistance. Other resistance zone to have in mind include $10,200, the 100 SMA and $10,400.
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