The price of Bitcoin (BTC), the SP 500 index and gold fell simultaneously on September 3rd. After this decline, sentiment in the markets remains cautiously negative.
It is possible that Two factors sparked a sharp drop in Bitcoin of more than 8% today. First, Unusually large amounts of BTC have been sold by miners in a very short time. Secondly, The US dollar index began to rebound from an important multi-year support area.
Daily chart for the BTC / USD pair. Source: TradingView.com
Analysts also attribute the decline in the gold price to the positive performance of the US dollar. The warning from the European Central Bank against the rising euro, investors made themselves back before the euro. This shift in investor sentiment has further boosted the dollar and contributed to the decline in the price of gold.
The fall of the SP 500 could be a simple coincidence how the decline comes after a big tech company sell-off.
What’s next for the price of Bitcoin?
The mood around Bitcoin after the big crash remains mixed. Some investors say BTC is likely to stabilize above $ 10,500 and see a bullish continuation.
Others pointed to the possibility of a medium-term high, considering the intensity of the withdrawal towards a key area. A pseudonym dealer named “DonAlt” said::
“There is a real possibility that we can make a high here in the medium term. We will rebound towards $ 11,500 over the weekend and I’ll call this a nil idea, but until then I think that structure would be a great high . “
Bitcoin’s sharp drop from $ 12,000 to less than $ 10,500 shows that the zone is between $ 12,000 and $ 12,500 It’s a strong area of resistance, and BTC risks forming a head-and-shoulders pattern over long periods of time.
In theory, Bitcoin’s decline from $ 11,462 to $ 10,460 in a single 24 hour period increases the likelihood of a deeper pullback. This is because BTC lost 31 days of profit with a single daily candle.
In conversation with Cointelegraph, the cryptocurrency analyst at eToro, Simon Peters said the market’s bullish structure remains intact. Therefore, by the time BTC drops below $ 10,000, technical analysts are suggesting that it is unlikely that we will see a larger correction. Peters said:
“It surpassed the $ 11,300 level in support through August, and Bitcoin may have a long way to go. Now we can expect a retest of $ 10,000 as a new low, which could also coincide with the 200-day EMA (exponential moving average). From a technical point of view, this could stimulate price movement and prevent the price from falling further. “
The past few months have been the longest period Bitcoin has held over $ 10,000 since 2017. Another variable that could prevent further downtrend is buyers entering the market in the $ 10,000 area.
There is hope
According to Peters The silver lining is that the recent pullback could tempt buyers in the short term. In the stable coin market in particular, there is a significant amount of capital on the sidelines.
“There are a number of possible causes of the sell-off, the main one being the miners’ sell-off. If there’s a silver lining, it is this: A drop below $ 10,000 could tempt some bulls they’ve been waiting on the edge to see.” to finally invest in Bitcoin. “