The price of Bitcoin has sharply negatively reacted to the attacks of the US Senate on Facebook, dropping below the psychological mark of $ 10,000 and entrenched below the low of July 2 ($ 9,614). This speaks in favor of a trend change to bearish and the likelihood of further decline in the short term, says Omkar Godboul, an analyst at CoinDesk Markets .

So, yesterday was recorded the second largest collapse in a year – by 13.25% in Bitstamp. In the next 24 hours, the analyst emphasized, the price may drop to $ 9097 (maximum on May 30). If the daily candle in UTC closes below this level, the probability of falling to $ 8100 (100-day MA) will greatly increase.

On the daily chart, for the first time since February, prices have been trading below the 50-day MA, which was considered a strong support level, and the 5-day and 10-day MA are directed down. At the same time, the RSI is below 50, which speaks in favor of the sellers. A bearish breakdown, according to Godboul, will now be irrelevant only if the weekly candle closes above $ 12,000.

CoinDesk Markets Information

Nevertheless, oversold was noticed on the 4-hour chart, therefore, it is also not worthwhile to exclude a temporary upward correction, Godbul cautioned.

CoinDesk Markets Information

In the long run, the situation is still in favor of the bulls, until the price of Bitcoin has not overcome the 200-day MA at $ 5980.

At the time of writing, Bitcoin is trading at around $ 9,200.

Subscribe to the BlockchainJournal news in Telegram: BlockchainJournal Live – the entire news feed, BlockchainJournal – the most important news and polls.