September 29, 2020 / Analytics

Bitcoin Price Analysis: BTC/USD Will Drop To $10,200

btc forecast

BTC bulls again failed to break through the resistance around $ 11,000. Therefore, a downward trend emerged in the Bitcoin (BTC) cryptocurrency market. BTC/USD should be reduced to $ 10,200 by October 6th.

Key Points

  • The BTC rate dropped below the $ 10,800 resistance zone and is hovering above the $ 10,600 support barrier.
  • A bearish trend line has formed with resistance at $ 10,700 on the hourly chart.
  • The closest support barrier is in the $ 10,650 area, which is in line with the 100 hour average of the coin’s value.

Bitcoin price began to rise and on Monday reached $ 10,945 (Bitstamp data) after a dump to $ 10,100. Buyers broke through the resistance at $ 10,800 and $ 10,900, but after that, the market reversed and the asset rate corrected to $ 10,660. If the bears overcome the barrier of $ 10,650, the downward movement will accelerate up to $ 10,200.

The BTC rate changes within a contracting triangle with resistance at $ 11,000 and support at $ 10,200. Therefore, BTC volatility is gradually decreasing. The lines of the figure will cross on October 25th. In this regard, over the next four weeks, the volatility of the price of the cryptocurrency will fall. On October 25, the triangle is expected to break down and further develop the bearish trend.


Bitcoin Price Will Drop

If we draw an analogy with the contracting triangle recorded in 2019, then we can come to the conclusion that this time the value of BTC will fall by 49% from the maximum indicator ($ 12,450). That is, the asset will be dumped to $ 6350 by the end of November. This mark is located above the start of the bullish trend, so if the price rolls back to this zone as a result of the next bull run, BTC will reach new heights.


However, the resistance to the bearish trend that began in 2018 is at $ 7,400. If this obstacle becomes a support zone, then the BTC rate will not fall below $ 7400. This fact will testify in favor of a full reversal in the market and a strengthening of the upward trend.


Technical indicators:

  • 4 hours MACD indicator is in the bearish trend zone.
  • 4 hours RSI index is above 40 (in the neutral zone).
  • Major Support Level – $ 10,200.
  • Major Resistance Level – $ 11,000.
  • The nearest pivot points are $ 10,310 and $ 10,966.
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