The price of Bitcoin is at risk of falling below $10,000 if a crucial support level fails to hold.
As the price of Bitcoin (BTC) couldn’t break through the resistance level of $12,000, a retracement did not come as a surprise. In recent days, BTC/USD pulled back to $11,400, a correction of almost 10%.
Meanwhile, gold, silver and other commodities are also correcting due to a slight bounce of the DXY, or the U.S. Dollar Currency Index.
What’s more, multiple heavy movers like Chainlink (LINK) and Tezos (XTZ) also showed substantial corrections in recent days. Can this be a moment to buy the dip, or are further revisions imminent? Let’s examine the charts.
#Bitcoin rejected at $11,800 after breaking back in the range
The price of Bitcoin couldn’t force a breakout above the $12,000 resistance level, which led to a drop back into the range.
As discussed in the previous article, the $12,000 area was crucial to hold for any further upward momentum. It failed to sustain this support, which means that a pullback became likely.
Immediately after the breakdown below $12,000, the price of Bitcoin fell towards the support area at $11,600. This $11,600 level resulted in a slight bounce towards $11,800. However, as the chart shows, the $11,800 area was then confirmed as a new level of resistance.
Such a support/resistance flip generally means more downside as the buyers aren’t strong enough to force the price above this resistance level. Given the weakness of such a move, more support levels below may get tested.
This is indeed what happened as BTC then dropped toward the next support level, which is the green zone, and the final crucial hurdle before a potentially quick drop to $10,000.
