Bitcoin price extends losses for the fourth consecutive trading session approaching the June lows. Weak sentiment amid a rising number of new coronavirus infections in the USA weigh on cryptocurrencies. Bitcoin breached below the 200-day moving average three days ago, and sellers stepped in accelerating the correction.
Traders should be cautious today as we have a large number of Bitcoin futures and Bitcoin options that might create extra volatility during the day.
A report by the Bank of International Settlements (BIS) says that CBDC’s could be the next big step in revolutionizing payments. Central banks around the world continue to compete to create their own CBDC. CBDCs are different from other digital currencies, such as Ethereum or Bitcoin, as they are issued and regulated by the central banks and are pegged to fiat currencies. Many countries around the world are currently working to find out whether a CBDC could be beneficial for their economies.
The mood today is negative in the cryptocurrencies markets, Ethereum (ETHUSD) is 1.30% lower at $229.31, Litecoin (LTCUSD) is 1.49% lower at $41.68, Lumen (XLMUSD) is 1.47% lower $0.0664, while Ripple (XRPUSD) is 1.24% lower at $0.1790.
Bitcoin price is 1.26% lower at $9,123, as the selling pressure accelerates after the price breached below the rising trendline and below the 200-day moving average. The technical picture has turned negative for the short term while the longer-term outlook remains bullish above the 100-day moving average.
On the downside, initial support stands at $9,080 the daily low. A break below $9,080, might test $8890 the low from June 15. If the bears continue the pressure, then the next target will be met at $8,340 the 100-day moving average.
On the flip side, first resistance for Bitcoin will be met at $9,289 the daily high. The next hurdle stands at $9,422 the 50-day moving average. If BTCUSD breaks higher, then the next target stands at $9,679 the high from June 24.