Bitcoin Market Update: BTC/USD balances on the verge of the abyss
- 10th July 2020
- Posted by: Hakeem
- Categories: CryptoCurrency, FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS
- Bitcoin resumes the decline after a failed recovery attempt.
- Global pessimism will increase the selling pressure on the first digital coin.
Bitcoin (BTC) has returned to the previous range and seems to be more inclined to retest $9,000 towards the end of the week. At the time of writing, BTC/USD is changing hands at $9,184, down nearly 2% since this time on Thursday. The first digital coin dropped below 1-hour SMA200 ($9,200), which now serves as a local resistance level. Notably, BTC/USD was struggling at this barrier since the end of June.
Negative sentiments on the global financial markets brought bears back to the crypto universe. A stock market fear indicator “VIX” jumped above its historical average which means that investors tend to flock to safety assets and avoid risks. Considering the growing Bitcoin’s correlation to S&P 500, many experts warn that BTC may be vulnerable to further losses should the stock indices collapse.
BTC/USD: Technical picture
On the intraday charts, a recovery is capped by $9,200. This resistance area is reinforced by 1-hour SMA200, 4-hour SMA50 and SMA100 A sustainable move higher is needed for the upside to gain traction with the next focus on $9,300 and $9,350 (4-hour SMA200). Once it is out of the way, the recovery may be extended towards the recent high of $9,475.
On the downside, the local support comes at the intraday low of $9,117. If it is broken, the increased bearish pressure may result in the sell-off towards psychological $9,000 where new buying interest is likely to appear.