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  • BTC/USD is drifting lower after the short-term recovery on Monday.
  • Strong support area comes on approach to $10,200.  

Bitcoin (BTC) has been drifting lower after a sharp upside movement  during early Asian hours on Monday. At the time of writing, BTC/USD is changing hands at $10,214, down 1.2% both on a day-on-day basis and  since the beginning of the day. Bitcoin’s market share has climbed to 69.0% as traders tend to view it as a safe-haven asset in turbulent times.

Bitcoin’s technical picture

Looking technically, Bitcoin (BTC) is trying to break below a strong support area of $10,200. It is created by a confluence of major technical indicators including  SMA50 (Simple Moving Average) and SMA100 on 1-hour chart and  the lower line of 1-hour Bollinger Band.  Once it is out of the way, the sell-off is likely to gain traction and take the price towards psychological $10,000. This support is strengthened by  the lower line of 4-hour Bollinger Band and a cluster of short-term buying orders located right below the handle.  A sustainable move lower will darken the technical picture and allow for further sell-off towards $9,900 (August 25 low) and $9,750 (August 22 low).

On the upside, we will need to see a sustainable move above $10,300 for the upside to gain traction. This area contains SMA50 4-hour and  SMA200 1-hour. Once it is out of the way, the price may retest $10,400 with the upper line of 1-hour Bollinger Band located on approach.

BTC/USD, 1-hour chart