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Bitcoin Could Plunge to $8,100 if These Key Levels Fail to Hold

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  • Bitcoin’s bulls and bears are currently engaged in a heated battle for control of $10,000, with this crucial level likely being the sole factor that determines its near-term outlook.
  • Analysts are noting that the ultimate reaction to this level will likely provide BTC with serious guidance, as a failure to hold above it could spark a far-reaching downtrend
  • BTC is also approaching a key technical level that bulls must try to defend ardently – its 200-day moving average
  • This level sits just below $10,000, and a failure to hold it could have dire consequences
  • One analyst believes that it could drop as low as $8,100 if it breaks this level

Bitcoin has experienced some immense turbulence throughout the past few days, with buyers attempting to hold it above $10,000 as selling pressure begins mounting.

This has done little to offer clarity into its mid-term outlook, but it does suggest that some serious downside could be imminent in the near-term.

Where it trends next may depend largely on its continued response to $10,000, as its price has been oscillating above and below this crucial level throughout the past several days.

A sustained break below this level could strike a blow to its market structure, also forcing it beneath its 200-day moving average.

One analyst believes that this will open the gates for a move down towards $8,100 in the near-term.

Bitcoin Shows Signs of Weakness as It Hovers Around $10,000

Earlier today, sellers attempted to invalidate the strength Bitcoin has shown around $10,000, leading the cryptocurrency’s price to slide all the way towards $9,900.

This level has proven to be strong support on multiple occasions throughout the past few days, and this time was no different.

If bulls are able to continue ardently defending the support are between $9,900 and $10,000 that has been established throughout the past few days, there’s a strong possibility that BTC will spring higher in the near-term.

Analyst: Breaking These Key Levels Will Open the Gates for $8,100

While speaking about the importance of $10,000, one analyst noted that a sustained break beneath this level – coupled with a break below BTC’s 200-day moving average – could cause it to decline significantly lower.

He even believes a move to $8,100 is in the cards.

“If 10k & the 200EMA doesn’t hold, looks like 8.1k,” he explained.

Image Courtesy of Josh Olszewicz. Chart via TradingView.

The coming several hours and days should continue offering significant insights into the strength of $10,000 as a Bitcoin support level.

Featured image from Unsplash.
Charts from TradingView.





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Tanzania central bank may rescind crypto ban after presidential endorsement

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The Bank of Tanzania is reportedly working to overturn its ban on crypto amid favorable cryptocurrency comments made by the country’s president.

According to Reuters, Tanzania’s central bank has begun working on directives from the country’s federal government that could see a reversal of its November 2019 crypto ban.

As previously reported by Cointelegraph, president Hassan urged the central bank to begin exploring Bitcoin (BTC) and digital assets earlier this month.

At the time, Hassan enjoined the Bank of Tanzania to keep up with the times, given the growing popularity of cryptocurrencies.

These favorable comments on crypto came on the heels of El Salvador’s Bitcoin Law and a wave of positive BTC sentiment across several nations in Latin America.

However, in Africa, crypto-related regulations beyond central bank bans are yet to emerge. Back in February, Nigeria’s central bank also prohibited financial institutions in the country from servicing crypto exchanges.

For Abdulmajid Nsekela, chairman of the Tanzania Bankers Association, the move could help to diversify financial transactions in the country that are currently dominated by cash payments.

Related: Tanzanian president urges central bank to prepare for crypto

Nsekela also echoed the president’s comments about the Bank of Tanzania needing to become better acquainted with the crypto market, adding, “The most challenging element for regulators is to be caught by surprise by innovations.”

According to data from Useful Tulips — a platform that tracks peer-to-peer BTC trading across the globe — Tanzania ranks seventh in peer-to-peer trading volume in Sub-Saharan Africa. Nigeria still accounts for more than half of the region’s Bitcoin trading activity.

While clear-cut crypto regulations are yet to emerge on the continent, some nations are working toward floating central bank digital currencies. Indeed, the central banks of both Nigeria and Ghana have issued announcements to that effect in June.