Another Bitcoin price analysis showed that the slide for BTC continued throughout this week, dropping below $10,000/BTC to as low as $8,932.89 at one point.
For some investors, this may seem like an ominous sign that this could be the beginning of Bitcoin’s end. For those who are more optimistic, this could also be a good “buy-low” point, but the important question is, can Bitcoin still rebound?
For now, signs are pointing toward further weaknesses, and BTC is momentarily testing a new support level from $8,500 (worst case scenario) to $9,000 (likely scenario). The worry for BTC investors is that the $10,000 level may now be a resistance point rather than what was previously regarded as a psychologically acceptable price floor.
For the past week, BTC’s moving average hovered between $9,100 and $9,200, so there are two possibilities:
1.We might see price action fluctuating around the low $9,000s for the next few sessions if nothing dramatic happens.
2.The momentum is leaning toward the downside as a bear flag was formed in the recent hours, so it may even test the $8,500 mark. This can be seen through the MACD (moving average convergence divergence) as well.
The biggest indication of where BTC is headed is whether it could return to the $9,000 level and stabilize there fast enough.
Also, given that Bitcoin futures have just been introduced and are said to be “slow growers”, we may not see a sudden bounce back to $10,000 for a while.
The best-case scenario for a rebound is over a longer horizon as the overheating cryptocurrency market cools down, but for now, the days of exponential daily gains are seemingly over.
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