Bitcoin price is in the middle of a battle to defend the short term tentative support at $8,800. An attempt to break above $9,600 resistance last week not only bounced but also culminated in a drop under $9,000. Bitcoin explored the levels below $9,000 on Friday to the extent of testing $8,600.
Meanwhile, the shallow recovery that beat the consolidation over the week stalled short of $9,200. BTC/USD is back under $9,000 while the sellers have eyes on $8,400. Correction to this level will not be entirely a bad idea as it is likely to create fresh demand in preparation for a potential end of the year rally.
Bitcoin’s path of least resistance is to the south as displayed by the confluence detector tool. The upside is marred with a prominent resistance level at $9,009. The 38.2% Fibonacci one-week, SMA five 1-hour, the previous low 4-hour and the Bollinger Band 15-minutes middle converge in the zone to form the resistance.
