Bitcoin – BTCUSD Price Retreat As Volatility Increase
Bitcoin – BTCUSD price rejected for the third day in a row at $8,900 giving the bears a signal that the recent rally might be coming to an end. In a volatile session yesterday bitcoin managed to recover early losses and turn positive. Today BTCUSD started higher but sellers stepped in around $8,890 and as of writing the crypto pair gives up 1.75% at $8,655. Bitcoin capitalization now stands at 157.58 billion.
Crypto investors hope for widespread adoption of crypto assets as the main factor fueling the rally this week. The introduction of options on BTC futures by the CME improves investors sentiment of approval of the digital assets by large institutional investors.
Bitcoin correction from two-month highs continues today and now we need to see how far this correction will go. The technical outlook is still positive for bitcoin despite the recent correction.
Let’s see the critical levels to the downside; initial support will be met at $8,575 daily low and the $8,500 psychological mark. Below that level the next support stands at $8,107 the low from January 14th. The next critical level is the 100-day moving average at $7,957 which if breached might cancel the recent bullish trend.
On the upside first resistance stands at $8,852 the daily top. While the high from yesterday’s session at 8,908 is the next hurdle. A break above will attract fresh bids and an attempt to 200-day moving average at $9,073 will be possible.