Bitcoin Price Just Crashed Below $10,000—Here's Why and What's Next
Kun Hu Sep 05, 2020 14:45
The Bitcoin price just declined below $10,000 for the first time since it surged above 10,000 on July 27.
3 reasons why Bitcoin crashed below $10,000
The Bitcoin price just plunged below $10,000 for the first time since it surged above $10,000 on July 27. As reported by Blockchain.News recently, $10,000 can hardly be the support level under several major reasons including the decline of money supply, surprising profits due to the stimulus package under such bad economic conditions, and gradually strong consensus on earning profits by shot.
Bitcoin price $10,000 may be a resistance level now
Before the surge above $10,000 on July 27 and staying for around two months, there were three times that the Bitcoin price was above $10,000. It was on Feb 9, May 7, and June 1 respectively. After Bitcoin's price reached $10,000, it soon dropped back below $10,000. We can draw the conclusion that $10,000 is a resistance level.
What’s next for Bitcoin's price
The 30-day moving average is around $11,200, but the current Bitcoin price is far below it, which indicates that Bitcoin bears are strong. Although we saw some support at around $10,000 price, technically it is waiting for the second dip. What we need to pay attention to is monetary policy and stimulus package reports, after all, the two-month bull run was mainly driven by new money supply. This not only applies to the stock market but also to Bitcoin, Ethereum, and other cryptocurrencies.
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