• Bitcoin resumed the decline amid the sell-off on the stock markets.
  • The downside pressure may increase into the US opening.

Bitcoin is changing hands at $9,190, mostly unchanged both on a day-to-day basis and since the beginning of Tuesday. The first digital coin has been locked in a tight range for weeks with rare attempts to break free in either direction. At the time of writing, Bitcoin's market value is registered at $169.3%, while its market share recovered to 62.6% from the recent low of 62.2%. 

Bitcoin's growing correlation with the stock markets makes it vulnerable to further losses. Asian stocks dropped on Tuesday amid concerns about the global economic recovery and escalation of China-American tensions. Both the S&P 500 Index and Nasdaq futures briefly touched new highs and slipped into a red zone. Bitcoin may follow the lead and slip under $9,000 if the sentiments do not improve by the time of the US opening. 

Also, traders are waiting for earnings reports this week that will provide more insights into the state of corporate America and the economy as a whole. 

“There is a risk that the divergence between a gloomy economic outlook and unexpectedly strong returns from equity markets is reconciled by some pull-back in asset prices rather than a surge in economic optimism. There is a case for caution,” Chris Iggo, chief investment officer for core investments at AXA Investment Managers, said as cited by Bloomberg.

BTC/USD technical picture

On the intraday charts, BTC/USD struggles to stay inside the recent consolidation range limited by $9,200 on the downside and $9,400 on the upside. The coin touched the intraday low $9,145 and rebounded to $9,180. If it fails to return above $9,200, the selling pressure may increase with the next focus on $9,000. This barrier is strong support and has been attracting buyers during the recent sell-off periods. If it is broken, weekly SMA50 at $8,700 will come into view.

On the upside,  a sustainable move above $9,345 (July 12 high) and $9,400 is needed for the upside to gain traction. Once this happens, the upside momentum may increase and push the price towards $9,500 followed by $9,800.

BTX/USD 1-hour chart


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

LUNA price approaches a launchpad, but will buyers come together?

LUNA price approaches a launchpad, but will buyers come together?

LUNA price shows a sign of healthy retracement after an egregious spike in buying pressure that triggered a quick and swift run-up. The ongoing pullback will provide investors with another chance to rally.

More Terra news

Why buying Solana price at these levels will provide the best ROI?

Why buying Solana price at these levels will provide the best ROI?

Solana price seems to be hovering inside a consolidation with no signs of a breakout. Investors can expect a dip to $31.66 or $24.52 levels in the near future as liquidity below these levels remains untapped.

More Solana news

Shiba Inu price hints at a 150% upswing, an opportunity too good to pass up

Shiba Inu price hints at a 150% upswing, an opportunity too good to pass up

Shiba Inu price has been hovering around a significant barrier for roughly three months with virtually no momentum to move above it. This development might be primed for a strong move but the directional bias remains unknown. 

More Shiba Inu news

Bitcoin Price Prediction: An update on the fractal forecast to $21,000

Bitcoin Price Prediction: An update on the fractal forecast to $21,000

Bitcoin price shows lackluster performance despite the announcement of BlackRock’s entry into crypto. Due to the spotlight on Ethereum and its upcoming Merge update, investors seem to be neglecting BTC.

More Bitcoin news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP