Bitcoin bulls take down the resistance at $9,600 but stalls before testing $9,700.
BTC/USD is facing an increased selling pressure according to the downward sloping RSI.
Since Tuesday, bulls have remained relentless in the push for gains towards the psychological $10,000. The return of volatility following extended motionless trading is still exciting among the buyers. A brief but impressive rally on Wednesday stalled under $9,600. However, the price action on Thursday sent BTC a notch higher where the price closed in on $9,700 but formed a weekly high at $9,684 (on Coinbase).
At the time of writing, BTC/USD is dancing at $9,600 as selling pressure increases across the cryptocurrency market mounts. In case the bulls let the price slip into the $9,500 range, expect Bitcoin to retest the support at $9,500.
Meanwhile, the buyer congestion at the 38.2% Fibonacci retracement level taken between the last drop from $10,443 to a low at $8,126 will try to cushion the digital asset from incurring extended losses.
Technically, the bearish pressure would continue to build in the current and the incoming session. The Relative Strength Index (RSI) has commenced the retreat from the overbought region (above 70). If the downward trend is not interrupted, sellers are likely to continue gaining traction.
BTC/USD 4-hour chart
For now, holding above or close to $9,600 is the best bet at averting losses that could even retest $9,400. Besides, the MACD shows that all is not lost for the bulls because buying pressure is still present, only that it is not enough to sustain gains above $9,600. The MACD is not only holding above the mean line but also features a bullish divergence.
In addition, the 50 SMA in the 4-hour range is about to cross above the 100 SMA is a signal for a growing bullish group. Therefore, buyers watching from the sidelines must join the market to create volume for Bitcoin as it brings down the barriers to $10,000.
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