Bitcoin Price Analysis – Flash Dump: Bitcoin Drops To $9300 Following 8% Price Cut

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20 February 2020 | Updated: 20 February 2020

• Bitcoin’s price dropped sharply after losing 8% in an hour
• If Bitcoin falls below the current price, $9000 would be on sight

Once more, Bitcoin has shown a strong weakness over the last 24-hours trading, losing almost 8% of its value instantly to $9300 yesterday. This sudden price cut has returned sellers in the market with $1000 sharp gains. In fact, Bitcoin dropped below the rising wedge that was formed on the daily chart. If the price continues to drop, a major correction could be underway.

Key resistance levels: $9800, $10000
Key support levels: $9300, $9000

Bitcoin (BTC) Price Analysis: Daily Chart – Bullish

After resume bullish in the rising channel yesterday, Bitcoin touched $10300 and fell sharply to $9300. Closing below this channel is something to worry about. Bitcoin seems to be footing a bearish move. At the moment, Bitcoin is trading around $9600.

BTCUSD, Daily Price Chart – Feb 20

In case the price keeps dropping, we may need to watch out for $9300 support, yesterday’s low. Bitcoin could further roll at $9000 if the current low breaks. If Bitcoin manages to recover back, we should expect a retest at $9800 and perhaps $10000 resistance. Taking a look at the daily technical indicators, it appeared Bitcoin could undergo a mild bearish in the coming days.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

On Tuesday, Bitcoin broke out from a descending channel after declining for about four days. Following this bullish impulsive, Bitcoin’s price got rejected and sharply nosedived straight inside the channel, as can be seen on the hourly chart.

BTCUSD, Hourly Price Chart – Feb 20

After touching the channel’s support around $9300, Bitcoin bounced back and remains in a consolidation mode. Bitcoin is now trapped around the channel’s resistance. If the price breaks again, $9800, $10000 and $10200 resistance might be revisited.

Meanwhile, the next target for sellers is $9400 and $9200, around the channel’s lower boundary. If Bitcoin breaks below this channel, then $9000 may come into play. For now, Bitcoin is revealed bearish on the technical indicators. More drops can be expected!

BITCOIN SELL ORDER

Sell: $9600
TP: $9300
SL: $9700

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Michael Fasogbon

Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.