- Bitcoin continues to press down on levels under $10,000.
- Bitcoin is likely to slide lower before finding a bottom for fresh demand.
Bitcoin along with most of the cryptocurrencies are suffering under increased bear pressure. The market, mostly painted in red portrays a picture of hibernating bulls with bears working hard to stick their heads out.
Bitcoin, for example, continues to press down on levels under $10,000. This comes after failing to find support at $10,500. Besides, the bears go demoralized after failing to correct above $10,800 as covered by Coingape on Monday.
The initial correction below the 50 Simple Moving Average (SMA) during the Asian session on Tuesday added gas to the fire pushing Bitcoin below the key $10,000 level. Moreover, the double-cross of the 50 SMA under the longer-term 100 SMA at $11,220 late last week, meant that Bitcoin was going to seek lower support.
BTC/USD 4-h chart
Bitcoin Chart source: Tradingview
However, the biggest question is, where will this support be. Looking at it technical perspective, we should expect Bitcoin slide a bit lower from the current market value at $9,985 towards the next support target at $9,500. This will see Bitcoin run into fresh demand just like the recent drop to $9,000 which later elevated Bitcoin above $11,000. Although, those gains were not sustainable.
The Moving Average Convergence Divergence in the ability to stay above the mean line also says that Bitcoin has a bearish tune to the current trend. The increasing divergence to the south is a key indicator of the increasing selling pressure.
On the upside, $10,000 is a critical level whose resistance must be cleared in the near-term if buyers want to prevent a slide towards $9,500 and $9,000 support levels respectively.