Bitcoin slumps to lower-half of its weekly range to test 200-day MA near $9,100
- Bitcoin continues to erase Friday and Saturday's gains.
- The 200-day MA support is being tested for the third time this week.
After dipping below the $9,000 mark on Thursday, Bitcoin (BTC/USD) staged a technical recovery and reached $9,400 on Saturday before losing its traction on Sunday. As of writing, the pair was trading at $9140, losing 1.7% and 4.4% on a daily and weekly basis, respectively.
Technical levels to consider
The Relative Strength Index (RSI) indicator on the daily chart is inching lower toward the 50 mark, suggesting that buyers are losing control of the pair's price action. However, the 200-day moving average (MA) currently located at $9,080 is a significant support level that was able to stay resilient against the bearish pressure throughout the week. With a daily close below the 200-day MA, the pair could extend its slide toward $8,600 (20-day MA) and $8,000 (psychological level).
On the flipside, $9,600 (100-day MA) continues to act as a dynamic resistance level and protect the critical $10,000 (psychological level/Fibonacci 61.8% retracement of June rally/October 28th high) hurdle. Beyond these levels, $10,540 (October 26th high) could be seen as the next target.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
