- BTC/USD gained 3.1% on a daily basis but the upside momentum is waning.
- Jordan Hiscott from Ayondo thinks the worst is over.
Bitcoin is trading at $8,310, after a short-lived growth above $8,400 to the multi-month high at $8,488. The coin has gained 3.1% on a daily basis and lost 1% since the beginning of Wednesday.
The digital currency No.1 gained roughly 44% from June’s low of $5785.43, which adds credibility to the bearish trend reversal. According to Jordan Hiscott, chief trader at Ayondo, Bitcoin has a potential to reach $9,200 sooner rather than later.
“The plethora of negative news, both on a macro and micro level, seems to have reached a crescendo and I would argue has even started to dissipate. From the micro perspective, the setup from the chart of some of the dominant cryptocurrencies, like Bitcoin, has certainly stabilised and formed a support base,” he said in the interview with Express.co.uk.
Bitcoin’s technical picture
On the intraday level, BTC/USD is trading well above all MAs, which makes look the picture bullish. However, inability to settle above $8,354 (61.8% Fibo retracement) might mean that a short-term correction is in store with the first support produced by psychological $8,000, strengthened by 50-SMA (1-hour chart). If it is broken, 50.0% Fibo retracement at $7,862 will come into focus. On the upside, resistance levels are $8,633 (200-DMA) and psychological $9,000.
BTC/USD, 1-hour chart
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