3 reasons for crash below $10,000
The bitcoin price just declined below $10,000 for the first time since it surged above 10,000 on July 27. As analysed recently, $10,000 can hardly be the support level under several major reasons like declining money supply, surprisingly profits due to stimulus package under such bad economic conditions, and gradually strong consensus on earning profits by shot.
Bitcoin price $10,000 May be a resistance level now
Before the surge above $10,000 on July 27 and staying for around two months, it had three times that the bitcoin price was above $10,000. It was on Feb 9, May 7 and June 1 separately. But after it touched $10,000, it soon drop back below $10,000. We can draw conclusion that $10,000 is a resistance level.
What’s next for bitcoin price
The 30 moving average is around 11200, the current bitcoin price is far below the price which indicates that the sell is strong. Although we saw some support at around $10,000 price, technically it is waiting for second round dip. What we need to pay attention to is monetary policy and stimulus package news, after all the two month bull was mainly driven by money supply abound. This not only applies to stock market but also bitcoin, ethereum and other cryptos.
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