|A bull market never goes by without corrections and there was never any reason to think this would be an exception. Last week, the bitcoin price dropped down from $12,000 to $10,000 after BTC failed to break through the $12k zone for a second time since reaching its yearly high of $12,500.
It’s not all bad news, though. The weekly close for bitcoin at approximately $10,250 is above the resistance from February. With the RSI looking oversold, as well as the downtrend being halted at the fairly recent May high and psychological barrier of $10,000, there should be a fair amount of buying power here. Furthermore, turning previous resistance into support is normally a bullish technical signal.
If this weekly level holds, bulls should be looking towards a bounce back to the February’s previous yearly high in the $10,500 range, and could once again test the yearly highs.
On the downside, the price has stagnated for a couple of days and this could be of concern. Losing this level would most likely take us down to the lower $9,000 area, with strong support to be found at $9,500. This would be a bearish technical signal, as this show of weakness would give the bears the ammunition they need to start selling/shorting the market down.