- BTC recovery is at risk as the upside momentum has faded away.
- Bulls need to engineer a strong move towards $8,300.
At the time of writing, BTC/USD is changing hands at $8,211 as the first digital coin tries to settle above the critical resistance level. A lack of follow-through bodes ill for short-term Bitcoin bulls as it might signal that the breakthrough is not sustainable.
Bitcoin is marginally higher on a day-on-day basis and unchanged since the beginning of the day. The short-term volatility is shrinking, meaning that the coin may stay range-bound in the nearest future.
Looking technically, BTC/USD hit the area above $8,300 on Thursday; however, the upside momentum faded away amid profit-taking on speculative longs. The immediate resistance is now created by the middle line of a daily Bollinger Band (currently at $8,225). It is followed by a stronger barrier at psychological $8,300 strengthened by with a confluence of several technical indicators, including the upper lines of 4-hour and 1-hour Bollinger Bands and the upper boundary of the recent consolidation channel.
A sustainable move above this handle will open up the way towards the next bullish aim of $8,500 followed by $8,900 (an upper line of weekly and daily Bollinger Bands.
On the downside, the initial support comes at $8,170 with SMA100 (Simple Moving Average) on 4-hour chart located on approach. Once it is cleared, the sell-off is likely to gain traction with the next focus on $8,100 (SMA50 1-hour). Meanwhile, a critical hurdle awaits Bitcoin bulls on approach to $8,000. This psychological barrier is strengthened by a host of technical levels, including the middle line of 4-hour Bollinger Band, SMA200 4-hour and SMA100 1-hour.
A sustainable move back below $8,000 will trigger a sharp sell-off towards $7,450 (the lower boundary of 1-day Bollinger Band) followed by $7,230 (SMA50 - Simple Moving Average - on a daily chart).
BTC/USD, 4-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.