Bitcoin Price Analysis: BTC/USD Shows Signs of Weakness; Might Drop below $9,500 Support Level

Bitcoin Price Analysis (BTC) – May 9

The Bitcoin price is seen pulling back because of severe selling pressure on the market.

BTC/USD Long-term Trend: Bullish (Daily Chart)

Key levels:

Resistance Levels: $11,200, $11,400 $11,600

Support Levels: $8,200, $8,000, $7,800

BTCUSD – Daily Chart

BTC/USD market has been in the overbought condition since April 29. In the long-run, the bulls break above $10,000 resistance level on two occasions and then pulled back as the price remains above the 9-day and 21-day moving averages. Moreover, as long as the technical indicator RSI (14) remains within the overbought zone, there is likely to be a downward correction that may come to play as soon as the signal begins to leave the region.

Furthermore, before the resumption of the upward trend, BTC/USD may likely pullback and retraces to the support level of $9,000. This could increase the chances of a rally above $10,500. However, once the price pulls back below the 9-day moving averages, this is an indication that BTC/USD is getting weaker. More so, the fear of a downward move may likely come to pass. For now, the RSI (14) is currently at around 72.45-level, which indicates that the market is in the overbought region.

Expectantly, to sustain the upward movement, the bulls will have to break above the channel at $10,300 resistance level. Further bullish movement may reach the potential resistance levels at $11,200, $11,400, and $11,600 respectively. While $8,200, $8,000, and $7,800 will serve as the major support levels, making room for the Bitcoin price to fall even further.

BTC/USD Medium-term Trend: Bullish (4H Chart)

On the 4-hour chart, the bears are now dominating the market tremendously while the bulls are trying to defend the $9,500 support as well. Meanwhile, the $9,200 and below may come into play if BTC breaks below the mentioned support.

BTCUSD – 4 Hour Chart

But in as much as the buyers can reinforce and power the market once again, traders can expect a retest at $10,000 resistance level, and breaking this level may further allow the bulls to reach $10,200 and above. Currently, the technical indicator RSI (14) is around 53.89-level which may move in sideways in the nearest term.

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Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.