- Bitcoin consolidates gains in a new range under $9,000.
- The short-term correction may take the price towards $8,300.
Bitcoin (BTC) extended Sunday gains in Asia and stopped within a whisker of critical $9,000. While the first digital coin retreated to $8,750 by the time of writing, it is still nearly 8% higher on a day-on-day basis. Strong bullish sentiments dominate the market, however, BTC/USD is vulnerable to the short-term bearish correction from oversold territory.
Bitcoin’s technical picture
BTC/USD broke free from the weekly Bollinger Band to prove the built-up of strong bullish sentiments on the market. The coin is well positioned to break above critical $9,000; however, the further strong rally is likely to be preceded by a downside recovery due to technical factors and speculative positioning.
The local support is created by $8,300 (the previous week’s high and the upper boundary of the recent channel). Once it is cleared, the downside correction may gain traction with the next focus on $8,150 (the top line of the weekly Bollinger Band), followed by psychological $8,000.
On the upside, a sustainable move above $9,000 will open un the way to uncharted territory with the next bullish aim as high as $9,500 and $9,800.
BTC/USD, 1-week chart
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