Bitcoin doesn’t have high volatility anymore and price analysis indicates that it stays above $10,000. The rest of the market show recovery signs too. After a few consecutive days of significant price fluctuations, in which Bitcoin lost $2,000 of its value, last day was quiet calm. Bitcoin bounced off $10,000 again but since then pumped to the intraday high of $10,350.
However, the bears didn’t allow more increases and drove it back down to its current level which is $10,150.
Looking ahead, Bitcoin price analysis shows that the psychological line at $10,000 remains as the first critical support. If it is broken, Bitcoin could soon test $9,800, $9,600, and even dump to $9,400 and $9,100.
If $10,000 indeed supports Bitcoin, the primary cryptocurrency could reverse the adverse trend that started last week and head towards the previous 2020 high at $10,500. Should Bitcoin reclaim it, the next resistance levels will be at $10,800 and $11,000.
there is a CME Gap that ranges from $9,645 to $9,925. Disregarding the reason as to why the gaps are closed it seems this gap will also be closed soon.
So it can be concluded that the bottom of this bitcoin crash will be at $9,645.
On the other hand, there are chances in Bitcoin price analysis that the price will dip even lower. Considering how important the $10,000 level is, if the price closes below it, this will cause a FOMO and hence a sell-off to $9,000 – even stronger support.
On-chain analyst, Cole Garner’s said that whales are bidding at $8,800 level, which is reasonable and hence wicks down to $8,800 levels can be expected. Hence, an approximate bottom of bitcoin can be at $8,800.
This would mean a 25% drop from $11,200, however, just to be on the safer side, a 30% drop would mean that bitcoin has bottomed; so, the absolute bottom of bitcoin could be at $8,300. It can be assumed that any dips beyond the $8,000 level will be bought out quickly.