Tanya Abrosimova
Independent Analyst
- Bitcoin is back below $9,000 amid technical correction and profit-taking.
- The short-term momentum remains positive as long as the price is above $8,700.
Cryptocurrencies are under pressure in Asia following massive Wednesday's sell-off. Bitcoin, digital coin No.1 touched a seven-week high at $9.757 before reversing the gains, trading currently at $8,851. Despite the retreat, Bitcoin stays above critical support line of $8,000, which coincides with 61.8% Fibonacci retracement.
The decline was caused mainly by technical factors and profit-taking on speculative positions on approach to 200-DMA at $9,900. Cryptocurrencies are too volatile, no wonder that traders prefer to book their profits as the price moves closer to critical levels. Eventually, behavior turns into self-fulfilling prophecy. The sell-off took the price below 200-DMA (currently at $9,180) and below psychologically important $9,000.
The intraday picture looks promising as BTC/USD is supported by 200-SMA (hourly interval) at $8,700 and there is a good chance for recovery towards the above-said 61.8% Fibonacci retracement and back to 200-DMA at $9,900.
BTC/USD, the hourly 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.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?