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The bitcoin price has dropped from $10,599 to $10,090 in the past 24 hours, retesting the $10,000 support level again merely seven days after BTC recovered from the $9,000 region.
Although bitcoin initially demonstrated signs of a new rally on September 2 with its strong breakout above $10,000 and its retest of key resistance, $10,900 acted as an immediate level of resistance, leading to a seven percent drop for BTC.
Technical analysts indicated that if the bitcoin price falls below $9,000, which has operated as a strong support level since July, the next level of support is likely to be found in the low $8,000 region to mid-$7,000.
Why bitcoin price is showing downward trend despite highly anticipated events
With the halving of the block reward of the Bitcoin network on the horizon and the launch of highly anticipated trading venues in the likes of Bakkt set for late September, many investors have been generally optimistic towards the short term trend of BTC.
However, with declining volume, bitcoin has struggled to break out of a large range between $9,900 to $10,900 since mid-August, possibly due to intensifying sell pressure.
Josh Rager, a technical analyst, said earlier this week that the formation of the price trend of BTC initially looked positive but a dip below $9,000 could result in a steep pullback for the asset.
He said:
"This current structure reminds me of 2015/2016 when Bitcoin did a 2.5x from the bottom followed by 6 months of sideways Then out of nowhere an almost 2x in price as Bitcoin slowly trended up to new highs One thing is for sure, I don't want to see that $9k support break.
If $BTC price does break $9k, it's not really any reason to panic as many buyers will likely step in by high $7ks For me, it's having to sit through weeks of down/sideways price which makes for a slow market. But patience is key."
Some traders foresee BTC demonstrating enough volume and strength from bulls in the near term reverse its trend and engage in an upside movement.
$BTC Weekly Update
Fresh hidden bull div confirmed, right off of a key support on the line chart. For me, this is an extremely bullish sign for the week(s) to come. pic.twitter.com/FboBgeq539
— The Wolf Of All Streets (@scottmelker) September 8, 2019
Since early August, $9,800 has acted as a strong area of support for BTC, preventing a large drop below the $9,000 level for nearly two months.
Click here for a real-time bitcoin price chart.