Tanya Abrosimova
Independent Analyst
- Cryptocurrency market has reversed after solid gains at the end of the previous week
- Bitcoin bulls didn't dare to touch $10,000 as of yet.
Bitcoin reached the highest level since the beginning of March on weekend, but fresh selling interest on approach to the psychologically important $10,000 pushed it back, triggering a forceful correction. BTC/USD broke below $9,600 during early Asian hours on Monday and touched $9,220 low, trading at $9,350 by the time of writing with bearish momentum gaining traction.
The coin has lost over 7% from the peak reached at $9,948, though the reasons behind the decline are mostly technical and speculative. The resistance at $10,000 is strengthened by 200-DMA, which makes it harder to break. Obviously, Bitcoin bulls will have to spend some time and apply some effort to get it cleared. Once it happens, BTC/USD will rush towards $10,400 (50% Fibo retracement) and then to the next psychological handle $11,000.
On the downside, the first line of support comes at $9,000 - this is a psychological level coupled with upside short-term trendline. Then comes $8,900 (100-DMA). A sustainable move below this level will bring $8,000 in focus.
Meanwhile, Warren Buffett called compared Bitcoin to "rat poison", speaking at CNBC ahead of Berkshire Hathaway's annual meeting. The famous investor prefers to keep his opinion about digital assets by himself, though it is obvious that he is not in the fan's camp.
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