Bitcoin (BTC) is currently trading well below the $10,500 level of support as bears take charge of the market.
The leading digital asset saw a sharp decline over the weekend that took it below $10,000, where a new monthly low formed near $9,850. Since then, the BTC price has rebounded slightly to trade at $10,145 during press time.
BTCUSD Chart by TradingView
The king coin is likely to experience some resistance as it embarks on an uptrend in the next coming hours due to a sharp bearish trend line forming with resistance near $10,250. If BTC surmounts that resistance, it could start a decent recovery wave toward $10,500.
A successful close above $10.5K could then accelerate the asset past $10,600, above which the BTC price might turn positive.
If the BTCUSD pair struggles to break above the $10,250 resistance and sees a daily close below $10K, there is a possibility of a further decline that could spark a mid-term downtrend.
BTC Should “Hold Up” despite Turbulent Stocks Market
The incredibly bearish price action witnessed in BTC markets correlated with a substantial correction in legacy markets over recent days.
The stock market saw a pullback that resulted in panic selling by retail investors, according to crypto trader @FranzReisen. The resultant sell-off caused most stocks to plummet, including Oil and the S&P 500.
Dan Tapiero, the co-founder of DTAP Capita, noted that a recent BTC crash by 8% was followed by the S&P 500 dipping 3% in a single trading session.
The macro analyst pointed to a “worrying data point” on the stock market, which could cause more losses amid unwinding retail call positions and institutional positions.
Tapiero concluded that the current macroeconomic environment and monetary stimulus attempts would likely favor safe-haven assets, asserting that gold and Bitcoin should “hold up” as stocks continue to unwind.
Ethereum Price Turns Red
The ETHUSD pair is back in a bearish zone after it plunged by over $150 from its swing highs of $490 seen a few days ago.
Over the past 24 hours, ETH saw a sharp decline as it broke the $350 and $320 levels of support to hit a multi-week low at $309. The second-largest crypto is currently up 3.45% at its price of $346.
ETHUSD Chart by TradingView
In the coming sessions, ETH could register a further uptrend if it breaks the $350 support zone.