Bitcoin Market Update: BTC/USD balances on the verge of the abyss

Bitcoin resumes the decline after a failed recovery attempt.
Global pessimism will increase the selling pressure on the first digital coin.

Tanya Abrosimova Independent Analyst

Bitcoin (BTC) has returned to the previous range and seems to be more inclined to retest $9,000 towards the end of the week. At the time of writing, BTC/USD is changing hands at $9,184, down nearly 2% since this time on Thursday. The first digital coin dropped below 1-hour SMA200 ($9,200), which now serves as a local resistance level. Notably, BTC/USD was struggling at this barrier since the end of June.

Negative sentiments on the global financial markets brought bears back to the crypto universe. A stock market fear indicator “VIX” jumped above its historical average which means that investors tend to flock to safety assets and avoid risks. Considering the growing Bitcoin's correlation to S&P 500, many experts warn that BTC may be vulnerable to further losses should the stock indices collapse.

BTC/USD: Technical picture

On the intraday charts, a recovery is capped by $9,200. This resistance area is reinforced by 1-hour SMA200, 4-hour SMA50 and SMA100 A sustainable move higher is needed for the upside to gain traction with the next focus on $9,300 and $9,350 (4-hour SMA200). Once it is out of the way, the recovery may be extended towards the recent high of $9,475.

On the downside, the local support comes at the intraday low of $9,117. If it is broken, the increased bearish pressure may result in the sell-off towards psychological $9,000 where new buying interest is likely to appear.

BTC/USD 4-hour chart

Author

Tanya Abrosimova

Independent Analyst

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