Bitcoin struggles to clear key hurdle, trades around $9,400
|After breaking above the $9,000 handle earlier in the week, Bitcoin (BTC/USD) pushed higher and touched its best level since late October at $9.570 on Thursday. However, the pair lost its traction and erased nearly 2% on Friday before starting to consolidate its losses on Saturday. As of writing, the pair was up 0.6% on the day at $9,385.
Technical outlook
On the daily chart, the RSI indicator stays within a touching distance of the 70 mark, above which the pair would get technically overbought in the near-term. The bullish momentum seems to be weakening and the pair might need to stage a technical correction before the next leg up. On the other hand, the 20-day SMA continues to stay above the 50-day and the 100-day SMA and is looking to make a bullish cross with the 200-day SMA, suggesting that the medium-term bullish outlook remains intact.
On the upside, $9,500 - $9,600 area (static resistance, Fibonacci %78.6 retracement of the Oct. 25 - Dec. 18 drop) aligns as a critical resistance that capped the pair's upside throughout the week. With a decisive break above that level, the pair could target $10,000 (psychological level) and $10.400 (Oct. 26 high). Supports, on the other hand, could be seen at $9,000 - $8,900 (Fibonacci %78.6 retracement of the Oct. 25 - Dec. 18 drop, 200-day SMA) and $8,500 (Fibonacci %50 retracement of the Oct. 25 - Dec. 18 drop).
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.