The US Treasury Secretary speech yesterday was largely considered as bullish for Bitcoin by those in the industry. BTC itself moved six percent back up to touch $11k but it has since slid back and is in danger of falling back to the crucial $10,000 level today.
Bitcoin Bears Awakening
Bitcoin’s gains over the past 24 hours are gradually being eroded again as the Asian trading session slips into the US, which is usually the more bearish. From an intraday high of just over $11,000, BTC has declined back to just below $10,500 at the time of writing. With a failure to break resistance further losses are looking likely.
Daily volume has fallen off marginally as the digital asset continues to make lower highs and lower lows. The head and shoulders pattern appears to be playing out though there has yet to be a sustained break of the neckline.
Analyst and trader, Josh Rager, has been eyeing the four hour chart noting that support has been broken twice with the next level at just below $10,200.
“A quick drop in price over the last two candles with the area to watch as support at $10,191. On the 4 hour chart, as long as it closes above that level it will continue to make higher-lows and maintain a ranging pattern. Close below that area and it’s bearish.”
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He followed up with a look at the longer term weekly chart observing that different time frames tell a different story. The weekly and month charts are showing that the buyers have become exhausted while further consolidation could be possible from patterns on shorter time frame charts.
“Each time frame tells a different story. The 4hr & LTF shows consolidation (ranging) in a condensing pattern. While the daily chart shows lower-lows/lower-highs. Weekly/Monthly charts show a clear rejection with lack of buying. = Neutral to bearish bias atm”
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The drop back to four figures would signal the awakening of the bears which could see the correction go all the way back to around $8,000.
There has been a little recovery from Monday’s $35 billion crypto crush, but that has mostly been Bitcoin bouncing off support. The weekly trend is still down and the next move will be crucial for BTC.
Altcoins Axed Again
As usual the altcoins are getting punished again. Ethereum has fallen below $220 in a 3 percent fall and EOS is getting crushed back to $4 as it slips down the top ten. There are only a handful of altcoins making any progress today and they include Cosmos, Ethereum Classic and NEM.
Total crypto is back where it was this time yesterday at $280 billion but volume is in decline as the bears begin to rouse.
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