Bitcoin, after falling to levels below $10,000 this week, may face further losses ahead

  • Bitcoin could fall below $10,000 this week as a strong sign of buyer exhaustion have emerged on the weekly chart in the form of “gravestone doji” candle.
  • A bear cross of short-term moving averages and weakening buy pressure on the daily chart also suggest scope for a drop.
  • The case for a price retreat into the four digits would weaken if bitcoin jumps above $12,450, invalidating a bearish pattern on the 4-hour chart. That would open the doors to a retest of the recent high of $13,880.

Weekly chart

Daily and 4-hour charts

  • Bitcoin has dropped below $10,000 for the first time in 11 days, reinforcing the buyer exhaustion signaled by the weekly chart, as discussed yesterday.
  • The daily chart indicators have turned bearish, while the 4-hour chart is reporting a bearish lower-highs, lower-lows pattern. As a result, the price could slip further toward the former resistance-turned-support of $9,097 (May 30 high) in the next couple of days.
  • A UTC close below $9,097 would invalidate the bullish setup on the daily chart.
  • A high-volume break above the falling trendline on the 4-hour chart, currently at $11,100, would shift risk in favor of retest of the recent high of $13,880.

BTC daily chart

4-hour chart

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