Bitcoin failed to break $10,000 resistance on Thursday calling for a dive to $9,000 to create fresh demand.
BTC/USD begins to consolidate at lower levels; the 38.2% Fibonacci level to be precise.
Bitcoin price was rejected from levels close to $10,000 on June 11. The attempt to break above the critical level came after a period of consolidation between $9,300 (functioned as key support) and $9,900 (resistance zone). A weekly high was reached at $9,776, creating the framework for somehow expected losses.
A reversal saw Bitcoin break below several support areas including $9,600 and $9,400.The bearish leg extended towards $9,000 but the fall was cushioned by the buyer congestion at the 23.6% Fibonacci retracement level taken between the last swing high of $10,429 to a swing low at $8,638.
A minor recovery has already occurred on Friday during the Asian session. However, Bitcoin is yet to hit levels at $9,500. At the time of writing, BTC/USD is doddering at $9,332 while flirting with the 38.2% Fibonacci retracement level.
The technical picture is surprisingly drab ahead of the weekend session. The fall from $10,000 is yet to create the demand investors hoped it would. For instance, after the Relative Strength Index (RSI) recovered from the dip at 10, it settled in a sideways trend above the average (50). If the leveling motion continues, a lower consolidation could take precedence.
BTC/USD 1-hour chart
On the upside, a recovery above $9,400 and $9,500 zones could pave the way for another run-up to $10,000. On the flip side, support is expected at $9,250, 23.6% Fibo and $9,000. It is apparent that bears have more strength with the Elliot Wave Oscillator printing a bearish session.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com