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  • Bitcoin cannot hold the ground above the critical $10,000.
  • A strong short-term support is created by  $9,700.

Bitcoin (BTC) hit $10,166 during early Asian hours and retreated to $9,970 by the time of writing. The lack of follow-through makes the coin vulnerable to further losses. BTC/USD has gained 2.2% on a day-on-day basis and lost 1.1% since the beginning of the day.

Bitcoin’s technical picture

Looking technically, the initial resistance is created by psychological $10,000 strengthened by the middle line of the 1-hour Bollinger Band. However, once it is broken, we will need to see a follow-through and a sustainable move above the intraday high of $10,166 and the upper line of 4-hour Bollinger Band located on approach for the upside to gain traction. The next strong resistance comes at $10,500. It is created by SMA50 (Simple Moving Average) on a daily chart.

The strong support awaits BTC/USD on approach to $9,700. This barrier is created by a confluence of SMA50 and the middle line of the Bollinger Band on 4-hour chart and SMA200 on 1-hour chart. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $9,250 (the lower line of 4-hour Bollinger Band) and psychological $9,000.

BTC/USD, 1-hour chart