Bitcoin Price Analysis: BTC/USD clings to modest gains above $9,000
- BTC/USD loses its momentum after touching key resistance above $9,000.
- Daily RSI continues to stay in overbought area.
Bitcoin (BTC/USD) edged higher on Saturday and gained nearly 2% on a daily basis to close a little below $9,000. Although the pair continued to push higher, it seems to have lost its momentum near the $9,200-9,250 region in Sunday's subdued trading action. As of writing, the pair was up 0.4% on a daily basis at $9,025
Technical outlook
The starting point of the sharp drop that occurred between March 7th and 14th is located in the $9,200-9,250 area, which seems to have formed a strong resistance in the near-term. Above that level, $9,480 (Apr. 30 high) could be the next hurdle before the pair could target $10,000 (psychological level). Meanwhile, the RSI indicator on the daily chart continues to show overbought conditions above 70, suggesting that the pair could make a technical correction before extending its rally.
On the downside, $9,000 (psychological level) is the immediate support ahead of $8,400 (Apr. 30 low, static level). In case the price breaks below these levels, $8,000 (psychological level, 100-day SMA, 200-day SMA) will be the next critical area that could show whether the pair goes into a deeper correction or, once again, turns north.
BTC/USD daily chart
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
