- Bitcoin risks falling below $10,000 this week, having confirmed a high-volume bearish reversal on the daily chart on Friday.
- A break below $10,000 would expose key support levels lined up at $9,755 and $9,320.
- The bearish case would weaken if the cryptocurrency rises above $10,350 today, confirming a wedge breakout on the hourly chart.
- A UTC close above $10,956 (Aug. 20 high as per Bitstamp data) is needed to revive the bullish outlook.
Bitcoin (BTC) is losing altitude and may slide further toward $9,750 this week unless prices invalidate a bearish technical setup with a move above $10,350 in the next few hours.
The top cryptocurrency fell to $10,060 at 08:10 UTC, the lowest level since Sept. 2, according to Bitstamp data.
BTC hit the one-week low two days after facing strong rejection near key resistance. On Friday, the cryptocurrency fell sharply to $10,200 with strong volumes shortly after facing rejection near $10,956 – a bearish lower high created on Aug. 20.
Friday’s drop marked a victory for the bears in an ongoing tug of war with the bulls represented by Wednesday’s “spinning top” candle.
Essentially, the market turned bearish with Friday’s drop and the negative follow through seen today has further strengthened the case for retest of key support levels lined up below $10,000.
Even so, sellers need to observe caution, as the pullback from highs near $10,956 has taken the shape of a bullish reversal on the intraday charts.
As of writing, BTC is changing hands at $10,240 on Bitstamp, representing a 3 percent drop on a 24-hour basis.