Bitcoin demand has picked up somehow on Wednesday, with BTCUSD pair challenging the $9,000 psychological level. The token is yet to confirm a breakout on a daily closing basis and preserve the current upside momentum to target the $10,000 barrier again.
The leading cryptocurrency by market capitalization is trying to clear the path to the $9,500 area, from where it was rejected last week and switched into a consolidation mode since then. Now, as the volatility seems to be picking up again, BTCUSD may extend current gains if the bulls stay in the game. In this context, the $9,000 handle is pivotal, as the inability to confirm a bullish breakthrough may lead to a correction amid profit-taking.
As the halving is nearing, demand for the main digital currency may accelerate in anticipation of another rally following the event that will take place on May 11-12. Against this backdrop, it is possible that the $9,000 level will turn into support in the short term, and the bulls could push the token to $9,500. Now, it will be interesting to see if the buyers stay in the game just before the halving, as higher levels may trigger profit-taking.
On the longer-term timeframes, the technical picture continues to improve since reaching a bottom below $3,800 in early-March. After a recovery above the 200- and 100-SMAs, bitcoin is now challenging the 50-weekly SMA. In case of confirmation of a break above this moving average, the longer-term technical outlook will brighten further.
On the downside, failure to settle above $9,100 could lead to a downside correction towards $8,700 and then to $8,500. At this stage, bearish risks are looking limited, with buyers reemerging on downside attempts, suggesting further gains could be ahead, especially as investors are preparing for a highly-anticipated halving. Ahead of this event, volatility could pick up further in the coming days.