August 4, 2020 / Analytics

Bitcoin Price Analysis: BTC/USD Will Drop To $10,000

bitcoinforecast

Bitcoin (BTC) cryptocurrency rate is consolidating in a range above the support zone around $ 11,000. At the same time, buyers are unable to overcome the resistance at $ 11,450. Therefore, BTC/USD should drop to $ 10,000 by August 11.

Key Points

  • There are powerful support zones at the $ 11,000 and $ 10,850 levels.
  • A downtrend line has formed with resistance at $ 11,300.
  • An upward movement will occur if the bulls break through the $ 11,450 barrier.

On Sunday, the price of Bitcoin reached its highest level since August last year – $ 12,115 (on the Bitstamp exchange). However, after that, the value of the asset fell sharply to $ 11,000, breaking the support barrier of $ 11,500. The bears to push BTC rate up to $ 10,500, but this obstacle held out. As a result, a correction towards $ 11,000 began.

btcusd chart

The next obstacles are at $ 11,450 and $ 11,500. If the last barrier is taken, the BTC price will rise to $ 12,000. Otherwise, BTC/USD will roll back to $ 10,000. The Bitcoin price has been pumped from July 21, moreover, a wedge is visible on the chart ( when falling from $ 12 115). Considering these factors, the asset price will fall to $ 10,000 with a high degree of probability.

Whales Are Betting On Bitcoin Drop

Institutional investors from the CME exchange are actively shorting BTC. Large traders have not been inspired by bull runs from $ 9,000 to $ 12,000, and they believe the coin will get cheaper. BigChonis analyst recorded gaps in the CME futures market at $ 9000, $ 7000, and $ 3000. Therefore, the BTC rate may start dumping to close these gaps.

btc gap chart

Private traders, on the other hand, open long positions and predict the continuation of the bullish trend in the Bitcoin market. This forecast is based on the fact that the BTC rate has overcome the macro-resistance barrier at $ 10,500. The upward trend is also evidenced by the growth in demand for the coin, recorded during the last pump – the number of created contracts for the purchase of Bitcoin on CME increased by 41.5%.

Technical indicators:

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI is above 50 (in the neutral zone).
  • Major Support Level – $ 11,000.
  • Major Resistance Level – $ 11,450.
  • The nearest pivot points are $ 11,035 and $ 11,862.
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