Bitcoin Market Update: BTC/USD recovery stalled, all eyes on the US stocks again
- Bitcoin may resume the decline if the US stock market enters the red zone.
- The technical picture implies that the sell-off may be extended towards the previous channel resistance.
Bitcoin left the tiresome range and tested the area above $9,400 on Tuesday. While at this stage the coin failed to settle above this barrier, the short-term picture looks bullish as long as the price stays above day-50 SMA. Bitcoin's dominance index settled at 62.2%, while its market value increased to $171 billion.
Notably, the stock markets are in a red zone due to the growing tensions between China and the US. Also, today Microsoft and Tesla publish their financial results. If the data disappoints, the markets are likely to extend the decline, which may hit the digital assets and trigger more sell-off towards $9,200 and even $9,000 in BTC/USD.
BTC/USD: Technical picture
On the intraday charts, the local support is created by the upward-looking 50-hour SMA at $9,280. If this barrier is broken, the sell-off will be extended towards the former channel resistance of $9,200 reinforced by a 200-hour SMA. This area should attract new speculative buyers and push the price back towards $9,400, which is an upper boundary of the new consolidation channel.
On the upside, a sustainable move above this area is needed for the upside to gain traction. Once $9,400 is out of the way, the recovery will be extended to $9,500 and $10,000. This area is regarded as a pivotal resistance in the long run that separates BTC from a move to 2020 high ($10.522).
BTC/USD 1-hour chart
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Author
Tanya Abrosimova
Independent Analyst
