Bitcoin continues to move sideways above $8,000
|- Bitcoin's recovery fails to gather momentum amid subdued trade action.
- BTC/USD remains below the critical 200-day moving average (MA).
After starting the week below $8,000, Bitcoin (BTC//USD) gained traction and advanced to its highest level since the sharp fall seen on September 24th at $8,820 on Friday but struggled to stretch higher on Saturday.
The lack of significant market drivers and the disappointment following the United States (US) Securities Exchange Commission's (ESC) denial of Bitwise's Bitcoin Exchange Traded Funds (ETF) didn't allow investors to commit to a more decisive rebound. As of writing, the BTC/USD pair was trading at $8,350, adding 1% on a daily basis.
Technical outlook
Since breaking below the 200-day MA in late September, the BTC/USD pair failed to make a daily close above that level despite testing it three times this week and seems to be making it difficult for buyers to take control of the price action. At the moment, that level is acting as a dynamic resistance at $8,700. A daily close above that critical level could bring in technical buyers and help the pair gain traction. On the upside, $9,000 (psychological level/Fibonacci 78.6% retracement of June rally) could be seen as the first short-term target ahead of $10,000 (psychological level/Fibonacci 61.8% retracement of June rally).
On the other hand, a strong support seems to have formed at $7,600/$7,700 region (starting point of June rally/September 26th and 30th low). Below that level, $7,200 (May 19th low) could be the next support.
Meanwhile, the Relative Strength Index (RSI) on the daily chart seems to be recovering modestly above the 40 mark, suggesting that the bearish pressure is losing strength in the near-term.
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