Bitcoin price crashed yesterday breaking below the $9600 mark, hitting the daily low at $9305. The drop yesterday was the largest drop in 2020 and cancelled the recent bullish momentum. BTCUSD failed to break above the $10300 yesterday and sellers stepped in aggressively sending the price down to two-week lows. Today bitcoin is 0.12% higher at $9606 in an attempt to stabilize after the sell-off. Now the outlook is negative as the bitcoin price hovering below the ascending trend channel that started in January 2020.
As we discussed yesterday it is crucial for the continuation of the bullish momentum to break above $10500. Bitcoin huge black candle yesterday shift the momentum to negative for the short term. Bitcoin lost yesterday over 20 billion and the capitalization now stands at 175.39 billion.
Bears have returned to BTCUSD as the crypto pair rejected yesterday at $10300 zone. The sharp correction shifts now traders attention to lower levels. The correction yesterday extended down to $9300 from where managed to rebound up to $9600. The technical outlook for bitcoin is negative for the short term but the longer-term bullish picture is intact as long as the cryp[to pair trading above the $9000 – $9100 zone.
On the downside, the first support for BTCUSD will be met at $9484 the daily low. If bitcoin price breaks below, the next support stands at $9308 the low from yesterday. Next crucial support level is at $9000 where the 50-day moving average crosses.
On the upside, the immediate resistance for bitcoin stands at $9649 the daily top. The next resistance stands at $10300 the high from February 19th. The five-month top at 10500 is the next supply zone.