Bitcoin Falls Briefly Below $10,000; Close to Previous Support Levels

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Written By: Eno Eteng (MSTA)
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    Summary:
  • BTCUSD testing support levels at sub-$10,000 as the number 1 crypto fails to breach the $12,000 mark. Possible descending triangle formation on daily chart.

As I predicted about two weeks ago when BTCUSD was pushing beyond $12,000, Bitcoin fell victim to the descending trendline resistance which started from the high of June 26, and continued through the highs of July 10 and the first week of August. Having failed to break above the $12,000 mark, the BTCUSD pair has made an aggressive push to the identified support levels of $11,300 and $10,618 (which it broke very easily). However, the pair came very close to hitting the 38.2% Fibonacci retracement of $9,840 before bouncing to the $10,058 price level as at the time of writing.

Technical Plays for BTCUSD

They Fibonacci retracement levels traced from the swing high of November 2017 to the swing low of December 2018 continue to define the support and resistance levels for BTCUSD. I expect the BTCUSD pair to retest the 38.2% Fibonacci retracement level of $9,840.

It should also be borne in mind that the 38.2% Fibo retracement level and the descending trendline resistance both define the borders of a symmetrical triangle. We are likely to see some more price interaction with these two boundaries before a defining break occurs. These interactions may occur over the next few weeks.

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.

Published by
Written By: Eno Eteng (MSTA)