{"id":414547,"date":"2020-02-13T17:00:19","date_gmt":"2020-02-13T17:00:19","guid":{"rendered":"https:\/\/wncen.com\/?p=414547"},"modified":"2024-06-11T08:12:10","modified_gmt":"2024-06-11T08:12:10","slug":"bitcoin-is-about-to-test-a-crucial-support-level-after-intense-overnight-volatility","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-is-about-to-test-a-crucial-support-level-after-intense-overnight-volatility\/","title":{"rendered":"Bitcoin is About to Test a Crucial Support Level After Intense Overnight Volatility"},"content":{"rendered":"
Bitcoin (BTC) found itself caught in the throes of intense volatility over the past several hours, with its recent bout of sideways trading within the mid-$10,300 region resulting in a major overnight drop down towards $10,000.<\/p>\n
Bulls were able to push Bitcoin slightly higher after this drop occurred, with buyers ardently attempting to defend the key psychological price level of $10,000.<\/p>\n
It now appears, however, that the crypto is quickly approaching a critical technical support level that has been formed throughout the course of the crypto\u2019s recent uptrend, with a break below this level opening the gates for significantly further downside.<\/p>\n
At the time of writing, Bitcoin<\/a> is trading down just under 1% at its current price<\/a> of $10,240, which marks a notable decline from daily highs of over $10,400 that were set during yesterday\u2019s slow upwards grind.<\/p>\n This drop first occurred overnight during a sharp movement that led the crypto to as low as $10,100, which is where bulls stepped in and helped guide BTC back up to $10,300.<\/p>\n From this point, Bitcoin has been able to show some signs that it is stabilizing around its current price levels, and analysts are noting that this price action is a \u201cliquidation game,\u201d making it incredibly dangerous to trade BTC at this time.<\/p>\n Josh Rager, a prominent cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting that altcoins could continue their upwards momentum as BTC trades sideways.<\/p>\n \u201cHaving fun yet? Looks like BTC has been a liquidation game, catching those offsides with high leverage. 4% move down, 4% move up followed by another 4% back down. No Bitcoin trade zone, but keeping eyes on alts that could potentially move w\/ BTC sideways,\u201d he explained.<\/p><\/blockquote>\n https:\/\/twitter.com\/Josh_Rager\/status\/14550529<\/p>\n One byproduct of this movement is the fact that this latest drop has led BTC<\/a> towards the lower boundary of a multi-week rising wedge that the crypto has formed over the past couple of weeks.<\/p>\n Teddy, another popular crypto analyst on Twitter, spoke about this rising wedge in a recent tweet, while referencing the chart seen below.<\/p>\n \u201cBTC Daily attempted to break resistance of rising wedge, but was rejected. Looks like we are going for a third lucky retest of support – bulls don’t let me down,\u201d he noted.<\/p><\/blockquote>\n https:\/\/twitter.com\/teddycleps\/status\/60006401?s=21<\/p>\nBTC Is About to Test a Critical Support Level<\/strong><\/h2>\n