$9,000: Bitcoin Breakdown Might Be The Real Deal As Altcoins Plunge

After a strong rejection near the $10,500 area on two occasions, bitcoin price started a fresh decrease against the US Dollar. price broke a few key supports near $10,200 and $10,000 to enter a bearish zone.

Moreover, there was a close below $10,000 and the 100 hourly simple moving average. The price even failed to stay above the $9,800 support area and it declined towards the $9,600 support.

A swing low is formed near $9,632 and the price is currently correcting losses. It surpassed the 23.6% Fib retracement level of the recent slide from the $10,400 high to $9,632 low.

However, bitcoin is facing hurdles near the $9,900 and $10,000 levels. More importantly, there is a short term declining channel forming with resistance near $9,900 on the hourly chart of the BTC/USD .

Besides, the 50% Fib retracement level of the recent slide from the $10,400 high to $9,632 low is near the $10,000 area to act as a key resistance. The main resistance for bitcoin is near the $10,120 level and the 100 hourly simple moving average.

Therefore, a successful break above $10,000 and then a follow up move above the 100 hourly simple moving average is needed for a fresh increase towards $10,500 in the near term.

More Losses As Ethereum and Ripple ?

As mentioned, Ethereum and ripple are declining heavily, which may perhaps increase pressure on bitcoin below $9,800. If it slides below the $9,600 support, the bears could even aim a break below the key $9,500 support level.

Finally, a convincing break below the $9,500 area is likely to set the momentum for a run towards the $9,000 level.


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