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Bitcoin Price Prediction: BTC/USD Plunges, Faces Rejection from Psychological Level of $10,000

Bitcoin (BTC) Price Prediction – May 10, 2020
BTC/USD pair has been struggling to break the $10,000 resistance for the past four days. There are two assumptions about Bitcoin’s recent uptrend. Firstly, Bitcoin will rally above $10,000, if it retraces above the breakout level of $9,400. Secondly, the downtrend will resume if it retraces below $9,400.

Key Levels:
Resistance Levels: $10,000, $11, 000, $12,000
Support Levels: $7,000, $6,000, $5,000

BTC/USD – Daily Chart

Nonetheless, Bitcoin has fallen below the breakout level of $9,400. The king coin has dropped to a low of $8,101 but it pulled above $8,500. The bears succeeded in breaking below the $9400 and $9,200 support levels. These support levels ought to have been held for price to rally above the $10,000 resistance. Unfortunately, the bulls have failed to breach the $10,000 psychological level.

This breakdown is a bearish signal that is responsible for the recent downtrend. Bitcoin has fallen overwhelmingly to the low above $8,000. Nonetheless, the bulls are making a downward correction as the market reaches above $8,500. BTC is trading at $8,661 at the time of writing. Meanwhile, the coin has fallen from level 80 to level 55 of the Relative Strength Index period 14. This implies that Bitcoin is in the uptrend zone.

BTC/USD Medium-term Trend: Bullish (4-Hour Chart)

BTC/USD – 4 Hour Chart

On the 4 hour chart, the bulls tested the $10,000 resistance twice while attempting to break the resistance. A bearish double top has been formed as bulls fail to breach the resistance level. This price pattern was responsible for the recent downtrend. The price broke the trend line and closed below it, indicating that the downward move will continue. The market is below 40 % range of the daily stochastic. This indicates that the king coin is in a bearish momentum.

 Please note: Insidebitcoins.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

 

 

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      Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.