On May 20, Bitcoin made a gradual downward move after buyers have consistently failed to breach the $10,000 overhead resistance. At first, BTC hovered above $9,700 for two days before encountering a bearish reaction. The bulls could not retest the resistance level, rather selling pressure plunged the king coin to $9,400 low.
At its initial fall, the market corrected upward but was repelled at $9,600 resistance. In its second fall, BTC slumped to $8,815 low. The bears succeeded by pushing the bulls out of the upside range between $9,300 and $10,000. This upside range is where the bulls fluctuate and retest the $10,000 resistance. Bitcoin failed to recover above $9,300 as the market continues its downward move.
However, the bulls have slim chances of retesting the overhead resistance. Nonetheless, at $8,815 low, the market corrected upward but was repelled. BTC is presently fluctuating between $8,600 and $8,800. The coin risks depreciation if the $8,600 support cracks. Besides, as the coin trades below the key support level, there is a likelihood of trading in the downsides towards $8,200 or $8,000. Meanwhile, the crypto has fallen to level 31 of the Relative Strength Index period 14. This indicates that the market is approaching the oversold region.
Bitcoin risks more downsides below $8,600 support
On the daily chart, the bulls after testing the $9,842 resistance zone, BTC plunged to $8,815 low. The downtrend resumed after retesting the $9,000 resistance.
Presently, the price has broken below the 12-day and 26-day EMA. The support line of the ascending channel has been broken. Technically, when price breaks a support line and closes below it, selling pressure is bound to continue. Bitcoin is below 50% range of the daily stochastic indicating that the coin is in a bearish momentum.
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