Bitcoin Price Technicals Suggest More Downside Potential Below $10,000.00

The $10,000.00 psychological handle has remained to be elusive for bitcoin price. As of this writing, BTCUSD is down by 3.21% as it trades around $9,433.96.

On the 4-hour time frame, it can be seen that the cryptocurrency is testing a confluence of resistance. For one, its current price coincides with the 200 SMA. This area also coincides with the falling trendline when you connect the highs of June 1, June 10, and June 16. Finally, when you draw the Fibonacci retracement tool from the high of June 10 to the low of June 15, it can be seen that bitcoin price is trading just below the 61.8% Fib level.

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A closer look at the 1-hour time frame also shows another bearish setup. In this chart, it can be seen that the cryptocurrency has recently made lower highs after a series of higher highs. Consequently, a head and shoulders chart pattern has formed. When you enroll in our free forex trading course, you will learn that this is widely considered as a bearish reversal indicator. A strong bearish close below the neckline support at $9,394.60 could mean that there are sellers in the market. The cryptocurrency could soon then fall to near-term support at $8,900.00 where bitcoin price bottomed on June 15.

On the other hand, a strong bullish close above the highs of June 16 at $9,593.99 would invalidate both the head and shoulders and falling trendline. Consequently, it could indicate that there are still buyers in the market and that bitcoin price could soon rally to near-term resistance at $10,011.40 where BTCUSD topped on June 10.

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