Bitcoin prices continue to come off lows registered as a result of the recent sell-off witnessed on June 2. Earlier this week, the BTCUSD pair registered the lowest level since May 28 around $9,250, and has been trying to regain ground since then. Today, the leading cryptocurrency by market capitalization has settled marginally below the $9,700 immediate resistance zone, struggling to get back above the $10,000 psychological handle.
After aggressive movements seen on Tuesday, bitcoin has settled in a tight range, suggesting traders decided to take a break after a spike in market volatility. On the daily timeframes, the RSI remains flat and continues to trade in the neutral territory, suggesting the current consolidation could be extended for some time, and the prices will remain in a limited range so far.
Despite the recent plunge, the number one digital currency refrained from deeper losses and manages to stay above the $9,000 significant support level during the sell-off. Such dynamics suggests traders are still not interested in pushing the prices much lower, with the upside trend remaining intact at this stage.
On the other hand, the inability to stage a more robust bounce from lows and fairly modest trading volumes may be a sign that investors don’t dare to speed up buying after a short-lived flash crash witnessed a couple of days ago. In other words, it may take some time before the bulls will reenter the game and lift bitcoin above $10,000.
In a wider picture, a significant resistance arrives around $10,400, from where the prices were rejected on June 2 and saw a steep decline. The coin will need the additional catalyst to make a decisive break above this level that attracts profit-taking. But first, BTCUSD needs to firmly regain the $10,000 barrier. However, the recovery potential remains limited, especially as the prices turned red on the daily timeframes in recent trading. A break below $9,500 will negate the short-term recovery scenario.