BTCUSD climbed to three-day highs marginally below $10,500 but encountered the selling pressure and turned negative
Bitcoin price continues to cling to the $10,000 psychological support these days, after a dip to $9,800 lows last week. However, the latest dynamics and the technical picture show that BTC may not have found its bottom yet, and further losses could lie ahead before a bullish reversal takes place.
In recent trading, BTCUSD climbed to three-day highs marginally below $10,500 but encountered the selling pressure and turned negative on the day. In the process, the 100-daily moving average turned into resistance again, suggesting the leading cryptocurrency by market capitalization is not ready for a sustainable and strong bounce just yet. Furthermore, the coin could retreat to fresh 1.5-month lows in the coming days and challenge the $9,700 region that could trigger a correction.
The fact that bitcoin lacks the upside impetus to regain the lost ground may signal investors’ willingness to take profit further before reentering the market at more attractive levels. In a wider picture, the longer-term outlook for BTC remains upbeat, however.
For now, the digital currency remains stuck in a tight range limited by $10,500 and $9,800. A breakthrough in either direction will set the tone for the pair in the short term and could create a strong momentum. The key support lies at the $9,000 handle, marginally below the 200-daily moving average. If the selling pressure intensifies and the above-mentioned support of $9,700 gives up, this figure will come back into market focus. However, buyers may send the prices higher from here.
On the upside, a decisive break above $10,000 is necessary for another attack of the $10,500 region. As of writing, BTCUSD was changing hands just at the psychological level, down over 1% on the day. Once the $10,500 intermediate resistance turns into support, the $11,000 key barrier will come back into market focus. Still, bitcoin will likely dip to fresh lows before the bullish momentum reemerges.