Bitcoin faces further price losses after breaching long- term support.

Having breached long-term support on Tuesday, Bitcoin still on the defensive for the fourth straight day.

According to Bitstamp data, we can see a drop from today’s opening for the leading cryptocurrency by market value ‘Bitcoin’ as the price started with $9,841 to descend to $9,720 which represents a 1.1% drop.
Looking at the previous three trading days, prices dropped from 1.36, 2.56 and 4.66% respectively.

Daily chart

 

Another bearish lower high was witnessed as bitcoin had a 3 day drop at $11,120.

Again, on Tuesday, there was violation of the four- month bullish rising trend line by bitcoin as UTC was printed close well below $10,000.

As a result, a drop to the July 17 low of $9,049 in the short-term cannot be ruled out.
Such a drop would hardly be surprising, given The bounce from that level to weekend’s high of $11,120 was accompanied by falling volumes, therefore it’s not a surprise to see such drop.

However, the July 2 low is still intact reverting to the support at $9,614 as the downside has been restricted around $9,650.

Meanwhile , as key daily chart indicators like the moving average convergence divergence histogram indicating the bearish momentum is gathering strength, that level could be breached soon.

In a situation whereby prices rise above $10,222, it will lead to reduction in the case for drop towards $9,650, invalidating a bearish lower highs pattern on the 4-hour chart. Having said that, to confirm a bullish reversal, a UTC close above $11,100 is needed.

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Credit: Daniel Palmer

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