InsideBitcoins.com

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.

Please note: Insidebitcoins.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • US-Friendly
  • Paypal accepted
  • 12+ cryptocurrencies
4.5/5

Visit Site
75% of retail investors lose money.
eToro Reviews

    eToro Reviews

    https://insidebitcoins.com/visit/etoro-newsCreate your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees
    4.5/5

    Visit Site
    80.5% of retail investors lose money.
    Plus500 Reviews

      Plus500 Reviews

      https://insidebitcoins.com/visit/plus500-newsCreate your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Past performance is no guarantee of future results.
      Avatar

      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.