Bitcoin May Suffer Deeper Drop Below This Price Average

View A weekly close below the 12-week exponential moving average, currently at $9,940, could yield a deeper drop to levels below $9,000.

BTC risks falling to levels below $9,500 if prices end the day below the 100-day moving average at $10,025.

The bitcoin price rally has stalled over the last nine weeks and the cryptocurrency could suffer a deeper pullback if the newfound support at $9,940 is breached.

Acceptance below that key EMA, currently at $9,940, may invite stronger selling pressure, leading to a deeper price drop, possibly to levels below $9,000.

Bitcoin broke into a bull market with a 26 percent price rise in the first week of April.

The moving average convergence divergence histogram has crossed below zero for the first time since February, confirming a bearish reversal.

BTC could find acceptance below the 12-week EMA at $9,940 and drop to $8,500 over the next few weeks.

As can be seen, BTC charted higher lows below the 12-week EMA throughout the rally from lows near $350 seen in January 2016 to a record high of $20,000 reached in December 2017.

If history is a guide, then the slide below the 12-week EMA in the next few weeks, if any, could end up recharging engines for the next leg higher in prices.

A high-volume break below that average would put the focus back on the bearish lower highs and open the doors to $9,467.