A couple of days ago, I walked you through a price analysis containing the current support levels and price outlook for Bitcoin now that we are under the important $10k psychological level. That prediction seems to be holding up as we inch closer and closer to the $9k support that I drew in the previous chart. This chart shows an updated recent history of Bitcoin’s price:
As you can see, technical analysis indicators continue to be suppressed as we enter a prolonged period of decline since the spike to $14k a few weeks ago. One thing that is clear on this chart is that there have been very few violent sell-offs and instead Bitcoin has been moving gradually down. I would classify this as more of a cooldown than a sell-off that we should be concerned about. In my opinion, the outlook for Bitcoin remains positive until we get a convincing break of the $9k support level.
To trade in these conditions, you need clearly defined support levels and very disciplined trading to know when to cut losing trades loose. If we do see a break of $9k in the coming days, I would expect a very quick dip to $8k, followed by a recovery. Any high-volume sell-off that brings the currency lower than that could renew a bear cycle that has beaten down all cryptocurrencies over the past couple of years.
In the next few days, I would expect Bitcoin’s price to continue to bleed slowly to around the $9k-$9.2k level before the net level of price incline.