- BTC/USD upside is strongly limited by the concentration of sellers at $10,000.
- Bitcoin price is in danger of sliding to $9,000 as long as it stays under $10,000.
Bitcoin depreciated in value significantly on Tuesday as bulls scattered for failing to defend $10,000 support. Bitcoin price dived under $10,000 forming a low at $9,862. The upside is strongly limited by the concentration of sellers at $10,000. Besides, the building bearish momentum continues to risk $9,800 immediate support who breach is likely to open Bitcoin to massive declines towards $9,000.
BTC/USD 1-h chart
According to confluence levels, initial resistance lies at $10,054. However, it good to know that resistance is a zone rather than a line. The indicators that converge at this zone include the previous high 15-mins, SMA 10 15-mins, Bollinger Band 15-mins, SMA 5 1-h and the 38.2% Fib retracement 1-W among others. Between $10,054 and the strongest resistance at $10,363, there exist slightly weaker resistance levels that Bitcoin will be able to sail through with momentum of the break above $10,000. Other hurdles to the upside lie at $10,775 and $10,084 as per the confluence tool.
Support levels are scarce with the initial target at $9,951 (buyer congestion area) hosting indicators like SMA 5 15-mins, previous low 1-h, BB 1-h lower, previous low 4-h, Fib 61.8 1-M, previous low 15-mins, and the Bollinger Band 15-mins lower. If Bitcoin clears this level, there is a chance that it could spiral to $9,000 and even extend the lows towards $8,800 support.
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