Bitcoin price approaching its 200-day moving average and a failure to hold it could have dire consequences
Bitcoin bulls and bears are currently engaged in a heated fight for control of the $ 10,000 level. This is an important level, considered the only factor that determines the short-term outlook of Bitcoin price.
The eventual response to this level will likely give Bitcoin a new direction, as failing to hold above this level could cause a sweeping downtrend. Furthermore, Bitcoin is also reaching a critical technical level that bulls must eagerly attempt to defend – its 200-day moving average. This is just below $ 10,000, and failure to hold it could have serious consequences.
Bitcoin price shows signs of weakness when trading around $ 10,000
Earlier today, sellers attempted to invalidate the strength that Bitcoin had displayed around $ 10,000, resulting in the price of BTC dropping to $ 9,900. This level has proven to be strong support on many occasions over the past few days, and this time it is no different.
If the bulls can continue to defend aggressively, the support between $ 9,900 and $ 10,000 has been established over the past few days, and there is a high chance that BTC will move higher next time.
While talking about the importance of $ 10,000, analyst Josh Olszewicz noted that a continuous break below this level – coupled with a break below BTC’s 200-day moving average – could cause it to drop. Significantly lower.
if 10k & the 200EMA doesn’t hold, looks like 8.1k pic.twitter.com/jQeAz1NG0L
— Josh Olszewicz (@CarpeNoctom) September 7, 2020
The next few hours and days will continue to provide insights into the strength of $ 10,000 as Bitcoin’s support level.
You can see the BTC price here.
Read more:
- Bitcoin Price Is Still Following A Bearish Pattern, And It Is Likely To Accelerate Lower Below $10,000
- There Are Three Reasons Now That Threatens To Take Bitcoin Price Breakdown Below $10,000 This Week