Bitcoin’s Key Psychological Level Showing ‘Strength' But Price Could Still Drop Another 30%

Although to some, “100k is more likely than 5k at this stage,” Bitcoin is not out of danger. With the stock market closed today, the crypto market may remain quiet too.

The weekend didn’t bring any reprieve for digital currencies, rather resulted in bitcoin falling to $9,850 briefly before going back above the $10,000 level.

The good thing for bitcoin is that the key psychological level of $10k, although broken a few times, has managed to hold the fort.

While bitcoin is keeping above $10,000 for the most part, for now, Ether, which has been leading this rally, lost nearly 35% of its value last week.

Ether’s loss resulted in the DeFi’s TVL declining by $2 billion, while a whopping $78 billion were wiped out from the overall crypto market. Su Zhu, CEO of Three Arrows Capital said,

“Eth 320 as a bottom made sense and played out; btc i am actually flabbergasted by the strength shown at 10k and prob means 100k is more likely than 5k at this stage.”

At the time of writing, BTC/USD has been trading around $10,150, with ‘real’ volume still low at just $1.2 billion. Meanwhile, Tether is currently recording over 3x of bitcoin’s volume.

In late July, the flagship cryptocurrency broke the $9,000 – $10,000 range in which bitcoin traded between May and July to form a new higher range of $11,000 to $12,000.

Bitcoin / US Dollar on Bitstamp
Source: TradingView — Bitcoin YTD performance (+38%)

The current situation, however, doesn’t bring any confidence to bulls, as per analyst DonAlt, who has been bearish on BTC for quite some time.

He is “full-blown beartard” on bitcoin until the digital asset has a significant daily close above $11,200. Such an upward move would invalidate his bearish stance, but if not, he is looking for $8,000 or even $6,000 – $7,000.

Already, the last week which saw the digital currency briefly going to $12,000, bitcoin has fallen 17.5%. But a move to about $7,000 would put the pullback into the 40% drop category, which will be in-line with the previous pullback of 30%-40% recorded during the last bull cycle to the top.

As such, on-chain analyst Willy Woo says while “Local on-chain switching bullish (looking at the next few weeks out),” he is “not calling this has bottomed,” although it may have.

However, he also says, “it's not a bad time to buy back in.”

A lot of Bitcoin’s next move depends on the stock market. Last week, after hitting a new all-time high, they experienced a correction, and a sharp reversal in tech stocks saw bitcoin responding as well.

However, unlike the crypto market, the stock market will remain closed on the occasion of Labor Day on Monday. Although stocks reversed some of their losses on Friday, markets are expected to still be choppy after investors return from the long weekend, which means bitcoin still remains in danger.

Bitcoin (BTC) Live Price

1 BTC/USD =10,907.2754 change ~ 2.16

Coin Market Cap

201.81 Billion

24 Hour Volume

48.46 Billion

24 Hour Change

2.16

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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