Bitcoin registered fresh 1.5-week lows on Friday and now makes some recovery attempts. The prices were rejected from the $8,200 intermediate support and turned positive in the daily timeframes. Still, the token obviously lacks the upside impetus as it struggles to even climb back above the $8,500 region. Since the start of the week, bears are in full control of the market, after the largest cryptocurrency by market capitalization failed to confirm a break above the $9,000 handle a week ago. It looks like the corrective impetus may persist for some time more though some signs of bottoming out can be seen in the timeframes as well.
If bitcoin continues to lose ground, it may struggle to hold above the $8,200 region and threaten the $8,000 psychological level in the days to come. As the dynamics these days shows, risk trends don’t affect the token this time, while earlier, risk aversion served as a bullish catalyst for the BTCUSD pair. So, bitcoin has yet to confirm its safe haven status.
The recent upside correction from $7,700 to the levels above $9,000 revived hopes for a continuation of the short-term upside trend. Many traders bet on a rally in bitcoin, citing the upcoming May 2020 halving event which, as widely expected, could send the prices to fresh highs. However, the cryptocurrency has encountered a strong resistance on the way north and the ascent is in question now.
In the short term, BTCUSD needs to get back above the $8,500 region in order to avoid another wave of the selling pressure. On the downside, it is important to hold above the mentioned $8,200 support zone as a break below it will open the way to the $8,000 handle. Should the digital currency stay afloat, we could see a gradual recovery towards the 200-daily moving average marginally below the $9,000 figure. In the weekly timeframes, the token finishes lower following six straight weeks of gains, so the picture remains bullish so far.
