- Total weekly volume for the bears is lower than expected, offering a small hope for a bullish rebound.
- Price would need a firm close above the 100-day MA in hopes of cementing a higher low relative to July 28’s dip low.
Bitcoin (BTC) continues to tumble from temporary support levels at $10,000 after enduring its worst single-day loss in a month.
At 06:15 UTC, BTC’s price pierced the 100-day moving average (MA) at $9,653, triggering a flurry of sell-orders as the mid-term trend switched from bullish-to-bearish.
The world’s largest cryptocurrency by market capitalization has since recovered slightly and at time of writing is changing hands at $9,800 on Bitstamp, representing a 2.4 percent loss on the day.
Bearish market sentiment echoed throughout the world today as the international stock markets fell across the board with the S&P 500 down 2.9 percent, while the FTSE 100 in the UK dropped by 1.42 percent.
That would seem to dispell the notion that BTC acts as a safe haven asset, offering certainty during darker economic time.
Regardless, the onus is now heavily on the bulls to regain a foothold back above the 100-day MA on the daily chart or risk further downside.
As can be viewed above, the symmetrical triangle breakdown is well underway after BTC’s price temporarily stalled along the 100-day MA at $9,652.
The bearish move is being supported by a histogram tick down on the awesome oscillator (AO) on the daily chart as it heads toward the neutral zero line, while the RSI fell bearish below 50 on August 13.
A failure by the bulls to close back above the key long-term moving average will undoubtedly spur further bearish pressure exposing lower weekly supports.
A Fibonacci retracement drawn from 2018’s peak low at $3,122 to 2019’s peak high at $13,880 shows $8,501 to be the most likely landing zone in the coming week should its price close beneath the 100-day MA and July 22’s prior bearish weekly close at $9,533.
Total weekly volume may offer some hope for the bulls as it’s currently tracking worse than July 22’s levels when the price of BTC rebounded from a low of $9,111 to a high of $11,085 as a result of weakening bearish momentum.
Falling price alongside limited volume usually points toward bear exhaustion, and may offer up a reversal and a new higher low above July 22’s dip low.
That outlook will be determined by the end of the weekly closing period on August 18.
Disclosure: This author holds no cryptocurrency at the time of writing.
BTC image via Shutterstock; charts via TradingView
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Author: Sebastian Sinclair