Bitcoin Spirals Below $11,000 After a Slight Consolidation

Bitcoin (BTC) has undergone a dramatic loss extension, as it shed more than $1000 in just under 24 hours.

In yesterday’s analysis, we speculated that Bitcoin could consolidate for a while before a major breakout. Based on our 4-hour chart, that is exactly what happened. After a while of holding around the $11,400-200 region, BTC finally gave in to the mounting pressure and dipped.

Bears succeeded in taking Bitcoin to the $11,000 psychological line, which immediately opened the door to further correcting.

The crypto market contracted by $28 billion today alone.

Key BTC Levels to Watch

At press time, the benchmark cryptocurrency is trading at $10,700, up by 2.7% from its daily low ($10,470). However, given the current climate in the market, it is difficult to predict what Bitcoin might do next.

The next support level, after the $10,500-470 level, is the $10,200 line. This area could open BTC up to a break below the 5-digit price range as a fresh sell-off will be triggered in anticipation of the CME Bitcoin futures gap filling.

The gap-fill will occur if Bitcoin falls below the $10,000 mark. After this, we’re likely going to see a rebound towards the $10,500 level and the $11,000 mark again.

The $10k line is the level to watch because a break below that level could switch the conditions around BTC to oversold for the first time since the Coronavirus-induced crash in March. This could trigger many trading bots into buying, which would help the cryptocurrency recuperate.

However, if Bitcoin caps any further declines from this level, the major level to watch is the $11k mark and subsequently the $11,400 and higher.

Total market capital: $351 billion

Bitcoin market capital: $197 billion

Bitcoin dominance: 56%

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