Bitcoin price finished nearly unchanged last week and extended its consolidation just below the 50-daily moving average on Monday. BTCUSD looks directionless as long as the prices remain below this short-term barrier while holding above the $9,000 psychological handle.
As the leading cryptocurrency by market capitalization remains stuck between the local support and resistance levels, it’s difficult to define a short-term trend. The mentioned moving average has climbed marginally to the $9,360 area and acts as the key hurdle for bulls. Last week, the pair failed to confirm a break above this level and retreated, confining to a tight trading range these days. Despite the current bullish bias, it looks like downside risks will continue to persist as long as the prices stay below the 50-DMA.
On the downside, BTCUSD needs to hold above the $9,100 area in order to avoid a pullback below the $9,000 psychological level. As long as the digital currency stays above this figure, there is scope for a bullish breakout.
In a wider picture, the pair has been supported by the 50-weekly moving average since late-April. Now, this moving average arrives around $8,600. Even though the coin is holding above this level, the upside potential remains limited on the weekly timeframes as well.
Any pickup in volatility in the days to come could help to define the direction of the short-term trend for the number one digital currency. Should BTCUSD regain a more decisive upside bias, the $9,500 resistance will come back into market focus. Once above this level, the prices will retarget the $9,800 intermediate resistance where June 23 highs arrive.
However, the longer the cryptocurrency remains below the 50-DMA, the higher is the risk of a downside correction under $9,000. In the immediate term, BTCUSD needs to stay above the $9,200 support area in order to avoid a bearish scenario. In this context, a daily close is important for the short-term direction in the pair.