Bitcoin staged an assault on the $10k level 3 days ago as the bulls took charge but failed to rally above it as the bears gathered some courage to resist the uptrend. Disregarding the present bull market sentiments, analysts are now preaching caution while speculating that BTC may be heading for a post-halving price crash as seen in recent times.
In correlation to the BTC dump analogy by technical analysts, it appears BTC couldn’t wait for the halving before staging a bloodbath that affected the whole crypto markets. As a result, bitcoin lost about 15% in price and has fallen to a critical support level at $8.8k.
Bitcoin 24 Hours Price History
The top cryptocurrency, having broken the support at the $9k area, set sail towards lesser prices. As of May 10, 02:59 hours UTC, the price of bitcoin had crashed through a major support level at $9k level and was launching a defense of the $8.5k area.
Bitcoin Technical Analysis
BTC/USD technical analysis turned bearish as soon as it hit highs slightly above $10,000. The Resistance Strength Indicator (RSI) is also returning from the overbought condition and leaning towards a formulating bearish trend.
The volume has lessened as investors wait for Bitcoin to substantiate the escape past $10,000. Nonetheless, if support at $8,500 ceases to function, Bitcoin could plunge lower to experiment with $8,000 again. The gap between $8,000 and $7,500 has elevated the attention of buyers and if tested, Bitcoin could also make a comeback upwards. The major support stays at $8,400.
As seen above, the RSI indicator window shows a downward trend with great potentials further down the pit. The RSI level has completely left the overbought position at 70.0 and has crossed the midpoint at 50.0 where a bounce back was expected. Now heading below 50.0, the next stop could be the 30.0 oversold condition, a time by which bitcoin may have lost about 30% in the higher timeframes.
Bitcoin is presently trading at $8,828 having lost about 15% since yesterday.
Halving In Few Hours!
Bitcoin is established to go through a mining reward halving. The occurrence takes place every four years and sees mining rewards given to miners decreased by half. This year’s halving will take place in just three days and investors across the border want to be prepared for the chunk of cake pursuing the halving as its consequence is predicted to ted culminate in a price rally.
As bitcoin block rewards halving pulls near, a pre-halving recovery is highly possible. Investors entering the market for a post-halving comeback could easily propel Bitcoin price above the $10,500 region. Regardless, if this comes to play, BTC/USD has the potential to reach $10,500 in the long term. However, the short term remains very bearish.
What Caused A 24-Hour 15% Price Dump?
It would appear the bloodbath was a “necessary evil.” Many analysts and traders already advocated for a pullback as BTC has rallied for about eight weeks in a row. According to popular opinions, in opposition to a wide belief that bitcoin may rally hard after halving, many analysts are airing their opinion on bitcoin price.
Due to popular demand, analysts have predicted a rational post-halving devastating price pullback which may see bitcoin shedding as much as 30% after its next block reward halving.
Coinpedia recently reported that popular technical analyst and trader, Rekt Capital, said that bitcoin’s eight straight weeks bull run may be followed by a devastating price crash if history were to repeat itself.
Similarly, Ontology co-founder, Andy Ji, aired related opinion of bitcoin’s post-halving price expectations.
Ji asserts that we can be “cautiously optimistic about the Bitcoin Halving in relation to price,” arguing that as the “news that the Bitcoin halving is happening is widely known, it’s less likely that it will drive price upwards as much as it did the last time.”