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Bitcoin heading towards $9000 support

With bitcoin having lost over 50% in a month, this article seeks to work out where the cryptocurrency is heading next.

Joshua Mahony JMahony_IG
Market Analyst, London

2018-01-17T16:01:27+0000

Bitcoin

Source: Bloomberg

Bitcoin has had a month to forget, with the world’s biggest and most popular cryptocurrency losing over 50% since the $20,000 peak back in December. With the price breaking below the $10,000 mark, many will be wondering how long this can go on.

The four-hour chart below highlights the triangle breakdown evident this week, with the price breaking below the critical $10,799 mark today. Interestingly, the 61.8% retracement came in around that same $10,799 support level, with the next major Fibonacci support level located at $8968. That also coincides with an area of previous support (30 November) and an ascending trendline instigated in September 2017.

Much of today has been spent attempting to clear the $10,000 support level, and now that this has happened, there is a strong chance we will make our way to $8968 support. Whether that will mark the end of this sell-off remains to be seen, but at the very least it provides some form of hurdle to this current exodus out of cryptos.

Bitcoin chart

Bitcoin chart

Bitcoin chart

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