This year, Bitcoin is showing constant growth attempts. BTC was able to overcome the $10,000 mark, but his inability to stay above this psychological level increases the likelihood of a big correction in the future.
Since February 10, we have already seen 3 drops in the price of Bitcoin below the $10,000 mark. Yesterday, in just half an hour, the price of Bitcoin fell from $10,165 to $9,312 according to Bitstamp.
Such a sharp decline has two effects. First, traders were able to enter the market at more attractive prices. As a result of this, Bitcoin was able to rise to the $9,500 area. And the second effect of yesterday's decline is the emergence of doubts that the uptrend will continue.
On Twitter, analyst Teddy Kleps concluded that the uptrend is broken and now the price will go into the downward channel before a new rise. The price has broken through an important support level of $9,700.
Bulls keep the price of Bitcoin above $9,000, but a break below this level will be a sign of a deeper correction down to the $8,400 mark.
The BTC/USD weekly chart clearly shows that after reaching $10,500, the price forms a second red candle in a row. In this case, we can assume that this is a signal of a deeper bearish correction.