The bitcoin price dropped sharply by more than five percent from $ 10,949 to $ 10,204 in the last 24 hours at a point that technical analysts described as a critical moment for bitcoin.
As the bitcoin price first started its way to $ 10,900, traders expected the dominant cryptocurrency to break out of a crucial resistance level and potentially try again at $ 11,400 with the possibility that it would increase to $ 12,000 in the short term .
Similar to how bitcoin reacted when testing $ 10,900, the asset immediately broke down to the low $ 10,000 region, and failed to climb purely over an area that has been considered heavy resistance since early August.
Where is bitcoin likely to test next?
Some traders have begun to indicate the likelihood of bitcoin testing the $ 9000 region before the rounds it did during the last week of August.
Josh Rager, a cryptocurrency trader, said that when the BTC fell $ 10,900 changed to a resistance level and it could demonstrate a short-term downside move to the $ 9,000 region. However, Rager said he intends to step in if it goes below $ 9,000, and hinted that if the BTC drops to a lower support level, it is likely to recover quickly.
“BTC Looks like the price has turned support into resistance over the four hours. Will continue to see how this plays out – but I'm not worried and will certainly be a buyer if Bitcoin is trending down to $ 9,000, "he said.
Cred, a cryptocurrency technical analyst, said earlier this week before the test of BTC to $ 10,900 as charts suggest the upward movement could be a trap. As soon as bitcoin hit $ 10,900, which Cred described as immediate resistance, it fell by six percent within an hour.
He stated:  "$ 10,000 level of broken support failed to provide resistance when retested, which is usually evidence of a trap (bearish continuation sellers on the S / R flip caught offside). Directional fluctuation from HTF favors the upside , and removing $ 10,460 dollars (intraday range high) would cement it. ”
With the launch of Bakkt on September 23 and the rise of regulated trading venues such as VanEck's" limited bitcoin ETF, "traders expect bulls to fight off selling prices the ace as BTC moves to test lower support levels.
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