September 22, 2020 / Analytics

Bitcoin Price Analysis: BTC/USD Will Drop To $9,600

bitcoin analysis forecast

The bulls failed to seize the initiative from the bears. Therefore, a downtrend emerged in the Bitcoin (BTC) cryptocurrency market. Hence, BTC/USD should drop to $ 9,600 by September 29.

Key Points

  • BTC/USD is consolidating in a range above the support zone around $ 10,300.
  • A bearish trend line has formed with resistance at $ 10,470 on the hourly chart.
  • The closest strong support barrier is located at $ 10,000.

Bitcoin started dumping again on September 21. Over last 24 hours, the digital asset fell by 5% – from $ 10,980 to $ 10,350 (Bitstamp data). BTC/USD corrected to $ 10,400 at night from Monday to Tuesday, but the bearish trend remained on the market. There is a contracting triangle with resistance at $ 10,450 and support at $ 10,400 on the BTC/USD chart.

It seems that the downward movement will accelerate during the next session. Separately, note, that on September 2, the dynamics of the BTC rate change went beyond the bullish trend that arose in March. The price of the coin is still fluctuating in a range below the trend line, thus, the market has undergone a full-fledged reversal, and in the future, we should expect the coin’s value to fall.

Market Makers Sell Off Bitcoin

Before the last BTC dump, a high activity of whales was recorded in the blockchain, with at least 100 coins stored in their wallets. They started withdrawing coins to crypto exchanges. A similar trend was observed with the wallets of mining pools and large crypto enterprises. These factors indicate that the mood in the market has changed in a negative direction. Market makers are preparing to make profit after the spring-summer pump.

There was a gap at $ 9,600 on CME exchange, so BTC will be drained at least up to this mark. However, renowned analyst Willie Woo is betting on a positive trend in the medium term. In his opinion, Bitcoin is not threatened with a full-scale dump. The coin will drop in price to $ 9600 and then start to rise in price, because below the $ 10,000 level, investors will buy cryptocurrency. But why then did the whales move? It is unlikely that moneybags withdraw coins to drain the BTC rate by only 8%.

Technical indicators:

  • 4 hours MACD indicator is in the bearish trend zone.
  • 4 hours RSI is above 30 (in the neutral zone).
  • Major Support Level – $ 10,000.
  • Major Resistance Level – $ 11,000.
  • The nearest pivot points are $ 10,388 and $ 10,785.
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