Search ForexCrunch
  • Bitcoin steadies above $9,000 following a four-day slump.
  • Near-term bearish outlook remains intact with RSI staying below 50.

After gaining more than 4% and closing in on $10,000, Bitcoin (BTC/USD) lost its traction and closed the last four trading days in the negative territory. The pair lost nearly 6% during that period but seems to have found near $9,000. As of writing, Bitcoin was virtually unchanged on a daily basis at $9,150.

Technical outlook

Bitcoin closed the third straight day below both the 20-day and the 50-day SMAs on Friday, suggesting that sellers remain in control of the price action. Additionally, the Relative Strength Indicator on the daily chart dropped below 50 to confirm the near-term bearish outlook.

On the downside, $9,000 area (psychological level/Fibonacci 23.6% retracement of March-June rally) aligns as a critical support level ahead of $8,600 (static level) and $8,400 (100-day SMA). 

Resistances could be seen at $9,400 (20-day SMA/50-day SMA), $,9,780 (June 22 high) and $10,000 (psychological level).

Additional technical levels to watch for