Bitcoin Price Analysis: BTC/USD in tactical retreat before another assault at $9,000

  • Bitcoin has reversed from a critical resistance of $8,900.
  • The first digital coin has regained its market share amid deep altcoins correction.

Bitcoin bulls hit a brick wall on the approach to $8,900. The first digital coin retreated to $8,660 after several unsuccessful attempts to pass this crucial barrier.  At the time of writing, BTC/USD is down 2% since the beginning of the day and mostly unchanged on a day-to-day basis. Despite the retreat, it is still moving within a bullish trend as long as $8,500 stays intact.

Notably, Bitcoin's market dominance recovered from Wednesday's low of 65.8% to 66.7% by press time as some major altcoins reversed to the downside sharply after exaggerated bullish moves during the previous days. Bitcoin forks, including Bitcoin Cash, Bitcoin SV, Bitcoin Gold and Bitcoin Diamond, are all in the red zone with Bitcoin SV down over 17% from this time on Wednesday.

BTC/USD: technical picture

As we have expected, Bitcoin has entered a corrective phase that may be followed by another attempt at a critical $9,000. From the longer-term perspective, we will need to see a sustainable move above this area for the upside to gain traction with the next focus on  $9,700 (38.2% Fibo retracements for the upside move from December 2018 low to July 2019 high. This resistance is another hard nut to crack for Bitcoin bulls that separates us from a psychological $10,000.

On the downside, the pivotal support is created by $8,500. This barrier reinforced by 50% Fibo retracement served as resistance during the previous week. Now it separates a healthy correction from a deeper setback towards $8,150. This support area is created by an upper boundary of the broken wedge) and followed by $7,950 (SMA100 daily). 

The RSI on a daily chart has moved from overbought territory, though it still points to the downside, which means that further correction is possible.

BTC/USD daily chart

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