- Bitcoin hits a new weekly after facing rejection at $10k
- Bitcoin is trapped below its previous major support
- BTC needs to break over the 100 SMA and $9,500 to return to the positive zone
Bitcoin News Today – Bitcoin recently made another attempt to break over the $10k mark, but it failed. The digital currency started a heavy downtrend after the rejection. Bitcoin (BTC) is currently recovering, but chances are it would face sellers close to the 100 simple moving average (4-hour).
Bitcoin Plunges Below Its Previous Major Support
This past week, the world’s most dominant digital currency failed to break over the $10k hurdle point against the USD. The digital currency surged to a high of $9,989 and was rejected. Bitcoin started a downtrend and broke below the $9,900 and $9,800 marks. The bears showed up and pushed the price of the digital currency below the $9,500 support and the 100 simple moving average (H4).
The downtrend was ignited after there was a break below a major ascending channel with support close to the $9,780 mark on the 4-hour chart of the BTC/USD trading pair. The downtrend was such that the price of the digital currency broke below the $9,200 support mark and plunged to the low of $9,084.
Bitcoin (BTC) Price Today – BTC / USD
The digital currency is currently correcting higher and it is trading over the $9,300 mark. However, it is trapped below the $9,500 mark, which was its previous major support level. On its way up, it broke over the 23.6 percent Fibonacci retracement level of the previous swing from the high of $9,989 to the low of $9,084.
On the upside, the immediate hurdle for the digital currency is close to the $9,500 and $9,540 marks. The 50 percent Fibonacci retracement level of the previous swing from the high of $9,989 to the low of $9,084 is also close to $9,537. However, the first major hurdle for the digital currency is close to the $9,600 mark and the 100 simple moving average.
Over that level, the next hurdle for the digital currency is close to the $9,770 mark. Hence, the price of the digital currency must break over the 100 simple moving average (4-hours) and then the trendline in order to move into a positive zone.
Can the Bulls Prevent Further Downtrends?
Bitcoin (BTC) might start another downtrend below the $9,400 mark if it fails to clear the 100 simple moving average and the $9,500 hurdle point. If Bitcoin fails to break over those levels, it could plunge below its immediate support. The first major support for the digital currency is close to the $9,300 mark, below which the bears might push prices to the $9,080 area. However, the major support is close to the $9k mark, where the bulls are likely to show up.