Bitcoin saw an incredibly sharp selloff this morning after previously being caught within a firm bout of sideways trading around $10,300. This latest selloff sent BTC reeling below the key $10,000 price region, marking the first break below this level since last Monday.
This violent downwards movement sent the crypto plunging to lows of $9,700 on major trading platforms like BitMEX, with the visit to this level allowing the crypto to find some support that has led it back up towards $10,000.
Analysts are now noting that this movement also marked a break below a key technical formation that it had been caught within, which could suggest that it will cut deeper before it finds any notable support.
Bitcoin Plummets to Lows of $9,700 as Bears Grow Strong
At the time of writing Bitcoin is trading down nearly 4% at its of $9,950, which marks a notable bounce from its intra-drop lows of $9,750 that were set at the bottom of this selloff.
It is important to note that bull’s reaction to this movement has been intense, with buyers and sellers currently being locked within an intense battle around the coveted five figure price region.
Big Cheds, a popular crypto trader, spoke about this movement in a recent tweet, noting that the crypto faced a $350 movement in a matter of five minutes.
“Bitcoin: $350 move in 5 min,” he noted.
$350 move in 5 min
— Cheds (Trading Quotes) (@BigCheds)
In the near-term, it is imperative that bulls firmly reclaim $10,000 in order for them to further extend the firm uptrend the crypto is currently caught within.
BTC Just Broke Below a Key Trendline
One factor that could be counting in seller’s favor is the fact that Bitcoin just broke below the lower boundary of a bearish ascending triangle formation, which could mean that this drop will cut deeper.
Teddy, a prominent analyst on Twitter, spoke about this in a recent tweet, telling his followers not to panic and to closely watch to see how the dust settles.
“BTC: There we go, broke support of rising wedge. Don’t panic, let’s see where it settles,” he said while pointing to the chart seen below.
//twitter.com/teddycleps/status/55007232?s=12
It is highly probable that this volatility will extend further as Bitcoin’s weekly close fast approaches, as a close below $10,000 would invalidate the bullish market structure that the cryptocurrency has formed over the past several weeks.
Featured image from Shutterstock.
