Bitcoin has been slowly depreciating over the past 7 days, dropping by a total of 11% to bring the price for the coin down to the $10,405 level. The cryptocurrency had gone as low as $9400 but had managed to find support around this level allowing Bitcoin to rebound back above the $10,000.

However, Bitcoin has now started to create lower highs and lower lows which is a prime sign of a bearish market. If Bitcoin continues to drop back beneath the $10,000 level and beneath the previous low at around $9,400 then it is confirmed that Bitcoin is heading lower. Furthermore, adding to this bearish sentiment, Bitcoin has recently dropped beneath a consolidation triangle pattern.

In this article, I will take a look at where Bitcoin may head toward in the short term - by the end of the month. Realistically, if Bitcoin does drop back beneath $10,000, we can expect it to continue to drop further lower which might leave Bitcoin close to the $9,000 level by the end of the month and, possibly, even around $8,200.

Let us take a look at the charts and see what has been going on.

Looking at the chart above, we can see that around mid-July, Bitcoin had fallen beneath the lower boundary of a wedge formation which had started the tumble back toward the $10,000 level. Over the next few days, Bitcoin continued to drop - breaking below the $10,000 level to find support beneath around $9,428 - support provided by a downside 1.272 Fibonacci Extension level.

Bitcoin has since rebounded as it currently trades around $10,405.

So Where Are We Headed?

The classic signs of lower highs and lower lows leads me to believe that we are just heading lower. Combined with the fact that the RSI is beneath the 50 level gives not much room for a bullish case. However, this IS CRYPTO, so pretty much any big buy may shift the sentiment.

Disregarding any huge buy incoming to change sentiment again, we can see Bitcoin heading lower beneath $10,000. Initially, we can expect strong support at the $9,428 level. However, if Bitcoin continues to fall further beneath this then the next two levels of support at to be located at the downside 1.414 Fibonacci Extension level priced at $9,019 and then at the short term .786 Fibonacci Retracement level priced at $8,773.

If the selling pressure continues to push the market lower, further support is then located at $8,431 (downside 1.618 Fibonacci Extension) and $8,234 (.886 Fib Retracement).

Although it looks like Bitcoin has already rolled over, these next 2 or 3 days should dictate where Bitcoin will head toward in the remainder of the month - with a break beneath $10,000 confirming we will be heading toward $9,000 or lower.