- BTC/USD has recovered from the intraday low, but bearish sentiments are still strong.
- The daily RSI supports the short-term bearish scenario.
Bitcoin (BTC) managed to recover above $9,800 after a bloody crash towards $9.600 during early Asian hours. At the time of writing, the first digital asset is changing hands at $9,860, down 3.5% on a day-on-day basis. Bitcoin’s sell-off triggered a carnage on the cryptocurrency market as all major altcoins collapsed from the recent highs. Bitcoin’s market dominance settled at 67.4%.
Bitcoin lost over $400 and crashed below $10,000 in a matter of minutes during early Asian hours amid excessively high volatility. As the coin dropped by more than 5%, the short-term market players had to liquidate their positions, which exacerbated the decline. Thus, several long positions to the tune of $150 million were closed on the leading exchange for cryptocurrency derivatives BitMEX.
Bitcoin's technical picture
Looking technically, BTC/USD has returned inside the Bollinger Band on a daily chart. $10,000 has turned into a strong resistance that may limit Bitcoin’s recovery in the short-run. Meanwhile, we will need to see a sustainable move above this handle for the upside to gain traction with the next focus on $10,250 ( the middle line of a Bollinger Band on a daily chart). A strong barrier awaits us on approach to $10,500. It is created by a combination of SMA50 (Simple Moving Average) and SMA100 on a daily chart.
On the downside, a move below $9,750 ( the lower line of one-day Bollinger Band) will trigger more sell-off and push the price towards intraday lows of $9,600. This support is followed by $9,300, which is the lowest level from August 30.
The downward-looking RSI (Relative Strength Index) on a daily chart implies that the bearish trend may gain traction.
BTC/USD, daily 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.