- Bitcoin may be vulnerable to massive losses if it fails at $9,650
- Critical support awaits Bitcoin bulls on approach to psychological $9,000.
Bitcoin (BTC) has lived through the most successful week since the beginning of August. Even though BTC retreated from the highest level of the week ($10,484), it finished Sunday over $1,300 more expensive that=n on Monday morning. This impressive growth forced experts and analysts to review their pessimistic forecasts.
While the true reasons for the sudden recovery remains unknown, the market has several ideas about what was going on.
“This positive sentiment, along with a good buying opportunity at the key $7,500 support level, has led to there being more buyers than sellers — which, at the end of the day, always leads to markets going higher,” Jeff Dorman, chief investment officer at Arca said as cited by Bloomberg.
He also added that this recovery had brought us back to the levels that preceded the recent sell-off. It means that Bitcoin (BTC) has returned back inside the range where it stayed during summer months.
Also, many experts believe that the recent boost was caused by the news that China planned to speed up the development of blockchain technology following the endorsement of President Xi Jinping. This theory is supported by a strong rally of China0based coins, such as NEO and ONT.
Bitcoin’s technical picture
On the upside, we will need to see a recovery above $9,650 ( SMA100 (Simple Moving Average) on a daily chart) to allow for an extended recovery towards $10,000 and the recent high of $10,484.
The local support is created by the upper line of one-day Bollinger Band at $9,465, Once it is out of the way, the sell-off is likely to gain traction with the next focus on psychological $9,000 and SMA50 daily at $8,800.
BTC/USD, the daily chart
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