Bitcoin Price Analysis: BTC/USD drops below $9,000 in sudden selloff
|After climbing to a fresh daily high of $9,215 in the last hour, Bitcoin (BTC/USD) made a sharp U-turn and quickly erased all of its daily gains. As of writing, the pair was trading at $8,960, losing 2.15% on a daily basis.
Although there were no apparent catalysts behind this sharp drop, the fact that the pair failed to break above the 20-day SMA and slumped below the key Fibonacci support may have allowed sellers to take control of the price action.
BTC/USD 15-min chart
With this recent fall, the RSI indicator on the daily chart turned south below the 50 handle to suggest that the bearish momentum is building up. The next critical support for the pair aligns at $8,700 (200-day SMA/Fibonacci 50% retracement of January-mid-February rally) before $8,400 (March 1 low/100-day SMA).
On the upside, $9,100-$9,200 area (Fibonacci 38.2% retracement of the same rally/20-day SMA/daily high) is located as the initial hurdle ahead of $9,300 (50-day SMA).
BTC/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.