- Bitcoin is hovering at $9,000, upside momentum is slow.
- The critical resistance comes on approach to $9,600.
BTC/USD recovered above $9,000 to trade at $9,080 by the time of writing. The first digital coin experienced a massive sell-off below $9,000 on Thursday and hit the recent low at $8,800 where new buyers popped in and saved the game. Despite the recovery, BTC/USD is down nearly 4% on a day-to-day basis and mostly unchanged since the beginning of the day.
BTC/USD: on-chain data
According to Intotheblock data, strong resistance is located between $9,346 and $9,616, as there are about 1.54 million addresses that bought 994,000 BTC around that price. A sustainable move above this area is needed to improve the technical picture and attract new short-term buyers to the market.
The support goes all the way down to $8,756 with 1 million addresses holding 593,000 BTC. They helped to stop the sell-off on Thursday and push the price back to $9,000.
BTC/USD: Technical picture
On the intraday charts, the above-mentioned $8,700 is followed by a stronger barrier of $8,600 created by 4-hour SMA200. If it is cleared, the downside momentum will gain traction with the next focus on $8,300-$8,150 area, which includes strong technical levels daily SMA100, SMA50 and SMA200 as well as 61.8% Fibo retracement for the downside move from February 2020 high.
On the upside, a recovery above $9,300 will improve the short-term technical picture and allow for an extended upside move towards $9,550-$9,600, which includes Thursday's high and the above-mentioned congestion area.
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.