- Bitcoin resumed the decline amid the downside correction on the market.
- The critical support zone is created by SMA200 daily.
Bitcoin retreated from Tuesday's high of $9,512 to trade at $9,170 by press time. BTC/USD has lost 2% both on a day-to-day basis and since the beginning of the day moving within the short-term bearish trend amid expanding volatility.
BTC/USD, the technical picture
Looking technically, a failure to engineer a sustainable breakthrough above SMA100 (Simple Moving Average) daily slowed down Bitcoin bulls and triggered the downside correction from an overbought territory. At the time of writing, SMA100 daily is registered at $9,616. We will need to see a sustainable move above this handle for the upside to gain traction with the next focus on this week's high at $9,938 followed by a psychological $10,000.
On the downside, the vital support awaits us on approach to psychological $9,000. Strengthened by SMA200 daily, this area is likely to slow down the sell-off and push the price back inside the recent range. However, once it is out of the way, the downside is likely to increase with the next bearish aim at $8,800 (SMA50 daily). A move below this area will open up the way to the previous consolidation zone of $8,700-$8,600 and negate an immediate bullish scenario.
BTC/USD, daily chart
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