Bitcoin turned down and instead of edging higher fell by almost 7% to 10,563 USD as of 08:15 a.m. ET. The cryptocurrency appears on track to test the psychological support of 10,000 USD, as the daily chart moving averages and other key indicators have turned bearish.
At the current price, roughly 53% of the rally from the July 28 low of 9,111 USD to the August 6 high of 12,325 USD stands erased.
The recent rally coincided with the devaluation of China’s yuan (CNY). The People’s Bank of China allowed the yuan to fall beyond 7 per US dollar on August 5. On the same day, Bitcoin rallied 7% and rose to a one-month high of 12,325 USD on the following day, triggering speculation that the cryptocurrency is acting as a safe haven asset in China. However, the recent drop might also be associated with this, as the CNY appreciated by 0.26% yesterday and is reporting a 0.32% gain against the greenback on Wednesday.
Whatever the reason for the price drop, the cryptocurrency is now looking weaker than it did yesterday, although a drop to 10,000 USD could be preceded by a minor bounce.
Today, the Bitcoin under selling pressure, exhibiting a “Sell signal as it slides below 11,000 USD and currently trades at 10,563 USD. The coin has been on a roller coaster ride in the past 24 hours. The coin broke all its major support levels at 11,300 USD, 11,000 USD and 10,800 USD. The down stride has been easy and breezy, as the coin was well above 11,000 USD trading at 11,339.31 USD, yesterday. As observed, the coin has been sliding since then, which made it dip by 7.64% to trade as low as 10,472.09 USD.
Bitcoin price analysis
Bitcoin current trading price slips below its 10-day SMA of 11,473.54 USD by 7.8% but is slightly above its 30-day SMA of 10,566.23 USD by 0.03%.
A bearish crossover of the 5- and 10-day moving averages and a below-50 reading on the relative strength index (RSI) indicate the path of least resistance is to the downside. The moving average convergence divergence (MACD) histogram has also crossed below zero, confirming a bullish-to-bearish trend change.
The MACD of the coin is in the positive zone but with a bearish outlook as the signal line crosses the MACD line.
The RSI of the coin breaches the lowest extremity and is below 30 and is in the oversold momentum due to the bearish move.
So, the cryptocurrency looks set to test 10,000 USD. The outlook would turn bullish if and when prices print a UTC close above 12,000 USD. That level acted as strong resistance in six days to August 10.
If Bitcoin continues to slip even lower, it may end the year with a plunging outlook, whereas if it even takes a leap, it may close the year trading around 15,000 USD.
Crypto market recap
Crypto market is down on Wednesday with Bloomberg Galaxy Crypto Index, declining by 1.35% for the day. The total cryptocurrency market value declined to 279.375 billion USD.
Ethereum is down by almost 2% to 206.59 USD. The cryptocurrency wasn’t able to maintain its price above any of its EMAs during its dive earlier last month – a clear sign of bearish momentum. However, the price was able to break the key resistance level near its 100-day EMA around 220 USD last week. Unfortunately, it seems the downtrend is now back in full force, as Ethereum has once again dropped below all its EMAs. The 20-day EMA (red) is also close to crossing the 50-day EMA (green) to the downside – another bearish signal.
Ripple’s XRP declined by 1.25% to 0.2929 USD. Although the coin is struggling to maintain an uptrend against the US Dollar, as the coin is facing hurdles to steadily climb above 0.30 USD. Yesterday, under a bearish impact, Ripple coin saw a drop from 0.3000 USD to 0.2915 USD and bounced back.
Bitcoin Cash is among the few cryptocurrencies gaining against the US Dollar. The coin added 0.7% to 340.79 USD.
Litecoin and Binance Coin are down by nearly 4%.