Bitcoin’s price broke an important support level that was holding the prices above it for over a week, resulting in a $1,000 drop in just over 9 hours. At press time, the coin’s price was hovering at around $10,800.
As seen in the above chart, the dip in prices started at 1:30 IST on July 5. Since then, the prices have continued to trickle down lower. Further, BTC looks like it is still adhering to the descending channel. However, it is a downtrend and the drop could continue to dip to as low as $10,400, if it breaches the immediate resistance at $10,700. The price of BTC has fallen by more than 9% in 11 hours, and more than 4% in an hour.
Over a longer time frame, the price of BTC has broken the 0.5 Fibonacci level at $11,394 once again, and might seek respite from the bears at 0.382 Fibonacci level, like it tried on July 2.
The parabolic ascent of Bitcoin since the start of April 2019 hit a ceiling on June 26, which also led to a correction wave that might still be underway. Bitcoin has failed to make a higher high, thus proving that BTC is still in a correction phase. The drop has caused altcoins to be devastated, contributing to the “altcoin season” being postponed.