BTCUSD hangs by a loose thread; Bitcoin could drop another 12-15% soon

BTCUSD is continuously displaying Bearish trends. It needs an urgent turnaround to prevent further decline. $9,100 will be the next crucial support level.

2020 hasn’t been the best of times for humans. The Coronavirus pandemic is still a looming threat. On a side note, Bitcoin enthusiasts were hoping for Bitcoin’s rise to the moon this year.

However, for the BTCUSD enthusiasts, it has so far been extraordinarily frustrating and draining. Bitcoin had its third halvening on May 11, and prices plunged from $10,000 to $8,600 on two occasions. It is as if, whenever BTCUSD decides to rise, the Bears are ready to pull it down.

BTCUSD looks like it is going again soon

Bitcoin was once the most liquid cryptocurrency. The narrative is entirely different now: BTCUSD is alarmingly illiquid. Moreover, miners are turning unprofitable and are exiting the network. It is causing the Hash rates to drop to alarmingly low levels.

BTCUSD Chart

The BTCUSD daily chart shows that the traded volumes are pretty low. The only times the volumes rose above the average levels are during the sell-offs.

It shows that the Bears dominate the BTCUSD market. The daily traded volume is around 6k Bitcoins. And out of all the transactions taking place, the amount of Bitcoins made for delivery is pretty low. It is another prominent Bearish indicator.

Check out BTCUSD chart on tradingview.

 

BTCUSD technical synopsis

The worse that could have happened to BTCUSD now is it losing a crucial support level. BTCUSD dropped to $9,418, and it thus lost the support at $9,520.

On top of it, the RSI is still pretty Bearish. MACD just had a downward crossover. It shows that BTCUSD is going further down. 

BTCUSD will gain another support at $9,100. And by the looks of the technical indicators, that doesn’t seem too far. That is an 11% drop from the $9,900 level that BTCUSD was at just a day back.

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