Bitcoin price drops $700 as $10,000 support breaks

Bitcoin dropped $700 in 30 minutes and hit $9,500 after hovering over $10,000 for more than a week.

After testing the support given by the 200-twelve-hour moving average 8 different times, Bitcoin finally broke below it.

As a result, the pioneer cryptocurrency plunged 6.60 percent within minutes.

This is considered a continuation pattern that developed after the 84.50 percent upswing BTC experienced from June 10 until June 26, known as the flagpole-which was succeeded by the current consolidation period, known as the pennant.

If this bullish formation is confirmed, it is likely that Bitcoin will end up moving in the same direction of the previous trend-predicting a 45.80 percent surge from the breakout point.

If the 38.2 percent Fibonacci retracement zone is able to hold, BTC could go up to the 23.6 percent Fibonacci retracement level.

Thus, a candlestick close and open below the 38.2 percent Fibonacci retracement zone could lead to a breakdown of the pattern that takes Bitcoin to test the 65 percent Fibonacci retracement level, $6,890.

Conversely, a move above the 23.6 percent Fibonacci retracement area could result in a breakout that takes BTC up to $14,650.

On one side, a bull flag is developing that could lead to a 45.80 percent upswing, if validated.

Due to the opposing views of the patterns analyzed, it will be wiser to wait for a breakout or breakdown of the 23.6 to 38.2 percent Fibonacci retracement area before entering a trade.