Bitcoin price struggles to regain the upside momentum after a rejection from the $10,000 handle last week. On Tuesday, BTCUSD made some recovery attempts earlier in the day but failed to overcome the $9,000 level. The current technical picture suggests further losses could be ahead for the number one cryptocurrency.
In part, the recent decline in bitcoin is related to a widespread surge in risk demand. Oil, stocks, and high-yielding currencies received a boost amid the continuing gradual re-opening of many countries as the coronavirus pandemic retreats. Besides, there are now rising hopes for a vaccine, which is now undergoing human clinical trials.
In the short-term, the largest digital currency by market capitalization will likely remain under the selling pressure, with upside attempts still looking too modest and shallow to bet on a sustainable recovery in prices. The longer the BTCUSD pair remains below the $9,000 handle, the higher the bearish risks are getting at this stage. On the downside, important support arrives at $8,600. This level capped the selling pressure on Monday and is critical for bulls as a break below it will open the way to the $8,000 figure, where the 100- and 200-DMAs nearly converge.
In a wider picture, the token needs to firmly regain the $10,000 barrier in order to get rid of the downside pressure and target fresh local highs. It is possible that bitcoin will suffer deeper losses before demand reemerges at more attractive levels. If so, the initial support arrives at the mentioned $8,600 level. On the upside, the pair may challenge the $9,200-$9,300 intermediate resistance if the $9,000 mark gives up.
On the weekly timeframes, BTCUSD is challenging the 50-SMA, a break below which will confirm the bearish dynamics. On the positive side, the prices are well above the 100- and 200-SMAs that could act as significant support levels if the downside pressure intensifies below $9,000.