We have entered the last week of this eventful month. We witnessed Bitcoin’s halving, its rise past $10,000 post the halving, and its fallback to $8,200 thereafter.
The decrease in the Hash rate for BTC is likely to make it enter into a capitulation. The last time the Bitcoin Hash rate entered this phase in 2018. The recovery witnessed a 3000% return for the BTCUSD.
$10,000 is a psychological barrier for BTC
Bitcoin is shedding its gains from the $10,000 mark it reached earlier in the month. BTC indeed faced some flak on the pretext of rumors about Satoshi selling off his eleven-year-old Bitcoins, although these rumors turned out to be false.
However, the sell-off was driven more by a psychological barrier for BTC crossing over the $10,000 mark. Several investors who looked for quick profits sold their holdings as they were skeptical about a further rise for BTCUSD.
It played in the minds of other investors who did not wish to lose their invested capital. Thus, a small level could create such a domino effect in investing.
Technical outlook and prediction for BTCUSD
Source: TradingView.com
The hourly-timeframe for BTCUSD shows that it has recovered somewhat from its lows of $8,600. Bitcoin is now trading at around $8,810.
We can see that the Relative Strength Index or RSI has changed its directions from the oversold territory and is moving up now. It is a positive sign for the BTCUSD investors.
However, investors can expect another round of sell-off as BTCUSD crosses past $9,400. Investors who purchased BTC with a short term view would want to breakeven or exit with small profits.
