Bitcoin price fell below $10.000 last week following the news of a phishing attack on one of the biggest cryptocurrency exchanges Binance. Although Binance was quick to announce that all clients’ funds are safe and complete, the news made its damage and pushed Bitcoin and other coin prices down.
We see a recovery attempt today and Bitcoin is testing $10.000 which is a strong resistance now. However, momentum has been weak so far. Besides, technical outlook for Bitcoin price is not very promising for the near term. The support line that I was talking about on this post is ash and dust right now. This was another reason of the plunge below $10.000 in my opinion.
However, this is not the only technical weakness. Price action in last four weeks has formed a double top formation which is negative for Bitcoin price. This type of chart formations implies a fall as big as the height of the tops which is equivalent to $2300 following the break of neckline that crosses around $9350.