Bitcoin price extends its consolidation marginally below the 50-daily moving average that continues to cap the upside potential for over two weeks already. Despite BTCUSD stays afloat, the pair struggled to make a decisive breakout these days, and it looks like the digital currency may see a bearish reversal if further upside attempts fail in the near term.
The leading cryptocurrency by market capitalization rallied strongly on Monday, as a brief break below the $9,000 key level attracted buyers and sent the token to the above-mentioned moving average that arrives just above the $9,300 area.
On the short-term timeframes, bitcoin is consolidation between $,9200 support and the $9,400 resistance area. Considering that the daily RSI is neutral and flat, the bulls may lack upside momentum to push the prices back above the $9,400 area. If so, the pair may retreat below $9,200 and even retest the $9,000 handle.
Interestingly, BTCUSD stays little changed despite many altcoins jumped to new multi-year highs on Wednesday. It looks like altcoins capitalized on the sideways price action in bitcoin. It may also signal that some abrupt moves in BTCUSD could take place soon.
On the upside, a break above the $9,300 area will open the way to the $9,400 key resistance zone. A daily close above this level would confirm a breakout and could bring the $10,000 psychological handle back in market focus. In case of rejection from the current levels, the coin number one may retest the $9,000 support and dip to 1.5-week lows around $8,800.
On the positive side, the bitcoin network hashrate reached new all-time highs this week, suggesting upside risks are prevailing now. In other words, the path of least resistance for the main digital currency is to the upside. It remains to be seen, however, if the potential break above $9,400 could be sustainable as traders may proceed to profit-taking following a breakout.