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Bitcoin abruptly drops as it hits $10,500 causing panic in the market

Bitcoin abruptly drops as it hits $10,500 causing panic in the market

Bitcoin has been on a near-relentless rally higher over the past 60 days, entering a clear uptrend after bottoming at $6,400 in December of 2019. It has gained 63 percent since the local bottom.

Although this is already an impressive feat in and of itself, analysts expected the cryptocurrency’s prospects to turn even more optimistic with the passing of a key price point — $10,500.

However, as soon as the bitcoin price hit the highly anticipated $10,500 level, it immediately slipped by four percent against the USD. The move led even the best performing cryptocurrencies in this rally including Ethereum to plunge by around six percent.

bitcoin ethereum
The Ethereum price drops by six percent after bitcoin rejects $10,500 (source: tradingview.com)

Bitcoin flipping $10,500 into support will be massive for the bull case

Prominent technical analyst Cred — who sports over 140,000 followers — remarked that since $9,500 has been breached, Bitcoin’s nearest resistance is $10,500, the midpoint of the tried-and-true range between $9,500 and $11,500.

So far, the cryptocurrency has rejected that level.

Though, Cred remarked that if Bitcoin can confirm a close above $10,600 — just a smidgen above the resistance he identified — prices will continue higher, likely unfettered until the other long-term resistance he identified at $11,500.

The importance of $10,500 was echoed by analyst Pierre, who wrote in his own analysis that “breaking above this level would lead to my $11,500 weekly target,” though a rejection of this level could lead to a retrace of at least 5 percent.

$10,500 is also important because this price point was the top of Bitcoin’s rally in September 2019, which was caused by China’s embracing of blockchain technologies in an unexpected fashion.

A failure to break past the previous swing high, analysts say, would mark a swing failure pattern (SFP) candle, which would likely mark the top for the ongoing Bitcoin rally should it form.

Ongoing battle at $10,500

After falling short of $10,500 earlier today and falling as low as $10,300 from there, bulls tried to pass this level yet again just minutes ago, pushing Bitcoin as high as $10,550 before prices dropped by $120 in minutes to $10,420.

This inability to pass this key resistance only accentuates its importance for buyers to surmount.

Can bulls bring prices above $10,500

Fortunately, a number of analysts are convinced that investors are likely to push and keep the price of Bitcoin above $10,500 in the coming days, despite the recent failures to do so.

Financial Survivalism, the cryptocurrency trader who at the start of 2020 called for an immediate rally to the $9,000s, recently remarked that the three-day Ichimoku Cloud for Bitcoin is now “fully bullish,” signaling a buy at $10,268, suggesting more upside is imminent.

And Dave the Wave, the trader who in the middle of 2019 said the price of BTC would retrace to the mid-$6,000s, just doubled down on his prediction the asset will hit $11,000 to $11,500 before any significant pullback, if at all.

Bitcoin | BTC

Updated: Feb 13 at 9:03 am UTC
$10,210.82
-0.82%

Bitcoin, currently ranked #1 by market cap, is down 0.82% over the past 24 hours. BTC has a market cap of $185.99B with a 24 hour volume of $42.17B.

Chart by CryptoCompare

Bitcoin is down 0.82% over the past 24 hours.

Posted In: , Analysis, Price Watch
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Nick Chong
Author

Nick Chong

Analyst @ CryptoSlate

A decentralist at heart, Nick has shown interest in Bitcoin and cryptocurrencies since 2013. He has since joined this industry as a full-time content creator, focusing on written content and visuals. Aside from working with other leading trade publications, Nick is a part-time creative at HTC's Bitcoin division, EXODUS. He is based in Canada, where there is an apparent lack of industry events.

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