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Bitcoin Price Forecast: No escape from the range as long as BTC bulls defend $9,000

  • BTC/USD has been trading in a tight range since the beginning of the week.
  • The critical support is created by psychological barrier $9,000.

BTC/USD is changing hands at $9,150, mostly unchanged both on a day-to-day basis and since the beginning of Tuesday. The first digital coin has been locked in a tight range since the start of the week as growth attempts are limited by $9,200, while the dips below $9,000 are heavily bought. The market capitalization of the first digital asset settled at $167 billion, while its market share is registered at 64.9%.

BTC/USD: Technical picture 

Despite the recovery from under $9,000, BTC/USD is still locked in a tight range with the short-term bearish bias. The crucial resistance is created by a confluence of the daily SMA50 and the middle line of the the daily Bollinger Band at $9,400. A sustainable move above this area is needed for the upside to gain traction and bring $9,700 into focus. THis barrier is reinforced by the upper line of the daily Bollinger Band. It separates the coin from $9,800 that capped the upside momentum for the most part of the current month. Considering the flat RSI on the daily chart, BTC/USD may stay sidelined in a tight range at least until the US opening. 

On the downside, $9,000 is still regarded as a pivotal support that has been tested on several occasions and proved its strength. Each time BTC/USD slumps below this line, new buyers pop in and push it back inside the current range.  The next support is created by $8,800 (with the lowest level of the previous week is at $8,823). It is closely followed by the weekly SMA50 at $8,700. This barrier has a potential to slow down decline as it has been serving as a strong backstop since the beginning of May.

BTC/USD daily chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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