- BTC/USD has reversed the gains of the day amid sharp sell-off.
- The coin needs to regain ground above $9,000 to improve the short-term picture.
BTC/USD dropped from the intraday $9,476 to $8,547. The first digital coin lost nearly $1000 in a matter of hours before recovering to $8,8820 by press time. Despite the sell-off, BTC is still 10% higher from this time on Wednesday. A sustainable move below $9,000 has created a strong bearish momentum; however, the coin is heavily bought on the dips.
BTC/USD: Technical picture
As we have already mentioned, the technical indicators on the intraday charts signaled that the downside correction may be underway. Once the price moved below the psychological barrier $9,000, reinforced by the upper boundary of the 4-hour Bollinger Band, the sell-off pressure increased and pushed the price towards $8,500 where new buyers emerged. Now the local resistance is created by the middle line of the 1-hour Bollinger Band $8,900 followed by $9,000. A sustainable move above this area is needed to get the recovery back on track.
On the downside, the first support comes at the intraday low $8,547. Once it is cleared, 1-hour SMA50 at $8,280 will come back into focus. It is closely followed by a psychological $8,000.