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Bitcoin Crashes Below $10,000: Is “To The Moon” canceled?

The Bears are back on the crypto market again and are trying to undermine Bitcoin’s gains over the past month. Where will the BTC price go next: up or down?

Correction or preparation for bearish aggression?

The first week of September turned out to be quite stressful for Bitcoin: under the pressure of the bears, the price of the crypto asset fell by more than 10%. As of today, Bitcoin is trading at $9,900, and the next few days could be decisive for the flagship cryptocurrency.

Earlier, leading analysts warned of a possible correction and short-term pullback in the price of Bitcoin after soaring to $12,000. After the fall, the bulls will try to keep Bitcoin in the price region above $10,000, so the current trading session promises to be “hot”. An increase in buying activity at this level has already been recorded, so traders can turn the turbulence of Bitcoin in their favor.

However, the bearish momentum is strong enough to offset Bitcoin’s gains over the past month. Today, the trajectory of the Bitcoin price movement is critically important: if a crypto asset can rise above $10,000 in the coming days, the crypto market can count on a short-term price increase.

How low can Bitcoin fall?

Some cryptanalysts do not see a problem in the current drawdown of the Bitcoin price and see this pullback as a natural stage on the way to a long-term uptrend. Technical charts indicate that Bitcoin is still in a relatively safe zone and is now retesting critical support at $9,900 to $10,000.

Also, traders admit the continuation of the fall in the price of Bitcoin as a result of the manifestation of several factors. First, it is the formation of a head and shoulders pattern on the technical chart, which signals a possible bearish trend reversal. Secondly, there is a risk that the price of Bitcoin futures on the CME will reach a gap (this concept means a difference in the asset rate chart when the closing price and opening price are very different from each other).

Analyzing the weekly chart of the Bitcoin movement, the trader noted the following:

If Bitcoin fails to hold above $ 10,000, its price could drop to the bottom of the CME gap and drop to $9,600.

Thus, bears and bulls today have an equal strength to take control of the flagship cryptocurrency. The next few days will be decisive for determining the trajectory of the Bitcoin price movement, which, in turn, can significantly affect the altcoin market.