BTC price experienced some intense turbulence in the past 24 hours after the asset plunged below the $11,500 level of support yesterday to hit lows of $10,400 earlier today.
The king coin’s value is currently stabilizing in the mid-$10,000 region as buyers attempt to regain control of its near-term price outlook.
The recent correction came about due to a rallying US dollar that caused the crypto market as a whole to slip.
The BTCUSD pair remains in a bearish zone after it broke below the $10,800 support to trade at during $10,504 press time.
BTCUSD Chart by Tradingview
This drop marks a nearly $1K plunge from the level $11,484 high BTC was trading at just two days ago. Many analysts and traders are now curious over whether the flagship asset will reclaim its crucial $11,000 support or see a further downside.
BTC Price Levels to Look Out For
BTC has traded well above $10K over the last couple of months, and BTC miners seem to have decided this is the opportune time to offload their coin holdings.
Many traders are now watching the $10,500-10,600 range as it has held as a crucial macro support over recent months.
The $10.5K level is particularly important to keep an eye on, as it marked two separate BTC price rally highs in February and June of this year.
For BTC to move back into a positive zone, it needs to successfully break above the $10,500 resistance and then close above $10.8K.
Despite losing some significant gains since yesterday, some traders say that all hope is not yet lost for the market since BTC bulls are still in control.
For instance, crypto trader Donalt believes that BTC remains above some critical technical levels on a high-term time frame (HTF), indicating that a further downside may be averted.
While sharing the chart below, Donalt tweeted:
“This is the HTF chart I’m watching. Bulls don’t want to fall back into the old range below $11500, they’ve got a few days to push it back. $10600 is support, but it’s uncomfortably deep back in the range.”
BTC High Time Frame Chart by Trader @CryptoDonAlt | Source Tradingview
A worst-case scenario for BTC would be a sell-off resulting in a close below $10.5K. In this scenario, the bulls’ initial support is near the $10,050 level, followed by the main support at $10K.
BTC Social Volume Indicator is Spiking
As per data from analytics platform Santiment, traders across the crypto market are paying more attention to BTC price activity. This increased interest in BTC resulted in a spike in the asset’s social volume indicator to a 16-day high.
Bitcoin Social volume hits 16-day high by Santiment.net.
Santiment shared the chart above explaining that the indicator may be spiking as traders debate whether the BTC dump is just starting or the decline marks the arrival of opportunities to buy the dip.
According to the analytics platform, high social volume indicators historically occurred during critical moments for the flagship crypto’s short-term price trend.